Debt Management Office (DMO) plans to raise ₦800 billion through Federal Government of Nigeria (FGN) bonds in February 2026, a 128.6% jump from the ₦350 billion mobilised last year, highlighting the government’s deepening reliance on domestic debt to bridge budget shortfalls and fund infrastructure amid elevated interest rates.
The auction, slated for February 23 with settlement on February 25, spans three tenors tailored for institutional investors like Pension Fund Administrators (PFAs), insurers, and high-net-worth individuals, with a minimum bid of ₦50,001,000.
These tax-exempt bonds under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) draw strong interest, fuelling Q3 2025’s $4.85 billion portfolio inflows as noted by the National Bureau of Statistics (NBS), with analysts forecasting oversubscription despite a dip from January’s ₦900 billion float.
While yields near 20% on the 10-year paper reflect fiscal strains and a hawkish Central Bank stance—mopping up liquidity to tame inflation and luring foreign portfolio investment—the strategy doubles as a tightrope, curbing private sector borrowing while locking in long-term, inflation-hedging returns for investors.
NAN anticipates keen market focus on the stop rates as DMO taps domestic savings for national development.
