Nigeria’s Federal Government is ramping up domestic borrowing, with plans to secure N800bn from the bond market in February 2026 as part of its ongoing fiscal financing strategy.
The move, outlined by the Debt Management Office, reflects a significant year-on-year increase in planned debt issuance.
Compared to the N350bn offered in February 2025, the new target represents an additional N450bn, translating to a rise of more than 128 per cent.
According to the official offer circular, the borrowing will be executed through three reopened Federal Government of Nigeria bonds.
These include N400bn of the 17.95 per cent FGN June 2032 bond, N300bn of the 19.89 per cent FGN May 2033 bond, and N100bn of the 19.00 per cent FGN February 2034 bond.
Importantly, the structure of the issuance signals a shift in debt strategy. Unlike the previous year, when a five-year instrument formed part of the offer, the 2026 programme is concentrated entirely on seven-year and 10-year tenors.
Analysts say this approach suggests an effort to lengthen the average maturity profile of domestic debt and ease short-term refinancing pressure.
“This is a deliberate maturity extension strategy,” a Lagos-based fixed income analyst said. “By focusing on longer tenors, the government is trying to manage rollover risks, even though borrowing costs remain elevated.”
Interest rates attached to the instruments remain high. The seven-year bond carries a coupon of 17.95 per cent, slightly lower than the 18.50 per cent offered on a comparable tenor in January.
Meanwhile, the 10-year papers are priced at 19.00 per cent and 19.89 per cent, underscoring the prevailing tight monetary environment.
Month-on-month figures show that while the February offer is N100bn lower than January’s record N900bn issuance, it still represents an aggressive borrowing stance.
In January 2026, the government offered N300bn of the 18.50 per cent FGN February 2031 bond, N400bn of the 19.00 per cent FGN February 2034 bond, and N200bn of the 22.60 per cent FGN January 2035 bond.
Notably, the 22.60 per cent coupon attached to the January 2035 paper highlights the elevated cost of long-term domestic financing earlier in the year.
Although February’s 10-year instruments are priced lower, they remain near the 20 per cent threshold.
Financial market observers argue that the expanded borrowing plan underscores continued fiscal pressures.
“Government financing needs remain substantial,” another analyst said. “Even with slightly moderated coupons, domestic debt service costs will stay significant.”
The bond auction is scheduled for February 23, 2026, with settlement two days later.