FG to Borrow N800bn via February Bonds as DMO Schedules Feb 23 Auction
The Federal Government, through the Debt Management Office (DMO), has announced plans to raise N800bn in the domestic debt market via its February 2026 Federal Government of Nigeria (FGN) bond auction, a sharp jump from the corresponding offer a year earlier.
The plan is contained in the February 2026 FGN Bond Offer Circular published by the DMO, which shows the government will offer three re-opened FGN bonds totalling N800bn, with the auction slated for February 23, 2026, and settlement scheduled for February 25, 2026.
FG to borrow N800bn via February bonds comes one month after a record-sized offer in January, when the DMO put N900bn on the table, underscoring the government’s continued reliance on the bond market to fund its financing needs.
What the DMO is offering in February 2026
According to the offer circular, the February 2026 auction comprises:
- N400bn of 17.95% FGN JUN 2032 (re-opening)
- N300bn of 19.89% FGN MAY 2033 (re-opening)
- N100bn of 19.00% FGN FEB 2034 (re-opening)
This brings the total offer size to N800bn for the February auction window.
The DMO also states the bonds are sold in N1,000 units, subject to a minimum subscription of N50,001,000 and multiples of N1,000 thereafter, while pricing for re-openings is determined by yields on auction day.
FG to borrow N800bn via February bonds is therefore not a fresh issuance of brand-new instruments, but a reopening of previously issued bonds, allowing the government to raise additional funds on already-established securities.
Auction timeline: key dates investors watch
The DMO circular sets out two dates that define the auction cycle:
- Auction date: February 23, 2026
- Settlement date: February 25, 2026
Settlement is the point at which successful bidders pay and the bonds are credited.
FG to borrow N800bn via February bonds will likely draw attention from pension funds, banks, asset managers and other institutional investors that routinely participate in primary auctions.
How it compares with February 2025
A year earlier, the February 2025 DMO offer stood at N350bn, split across two re-opened bonds:
- N200bn of 19.30% FGN APR 2029 (re-opening)
- N150bn of 18.50% FGN FEB 2031 (re-opening)
That offer had an auction date of February 24, 2025, according to the DMO’s February 2025 offer circular.
https://ogelenews.ng/fg-to-borrow-n800bn-via-february-bonds
On a year-on-year basis, the February 2026 offer represents an increase of N450bn over February 2025. That jump is widely reported as a 128.6% rise, meaning the government is seeking more than double what it offered in the same period last year.
FG to borrow N800bn via February bonds is, in that sense, a clear signal of larger funding requirements being routed through the domestic bond market.
Why “re-openings” matter
A re-opening means the government is offering more of an existing bond series rather than creating a new bond. The coupon rate on the bond remains what it was when the bond was first issued, while the auction price and yield-to-maturity are determined at the auction based on investor bids.
For the issuer, re-openings deepen liquidity in benchmark bonds and support market trading. For investors, it provides access to familiar instruments and a clearer pricing curve across maturities.
FG to borrow N800bn via February bonds also reflects the DMO’s pattern of building out a consistent set of benchmark maturities in the local market.
January context: the N900bn benchmark
The February offer comes after a January cycle that set a high bar. BusinessDay reported that the government opened a N900bn bond auction in January 2026, offering yields up to 22.60% on one of the instruments, as funding needs and market conditions shaped pricing expectations.
FG to borrow N800bn via February bonds is lower than January’s N900bn, but still far above February 2025’s N350bn, keeping issuance elevated.
What to watch after the auction
For readers and investors, the most important follow-ups after February 23 will be:
- Amount allotted versus amount offered (oversubscription or under-subscription)
- Stop rates / marginal yields on each reopened bond
- Market reaction in secondary trading and how it affects future auctions
Those results typically shape expectations for subsequent offer sizes and pricing.
FG to borrow N800bn via February bonds will therefore be judged not only by the headline offer, but by demand, pricing, and how smoothly the market absorbs the supply.
