The Federal Government plans to double domestic borrowing through a N900bn January 2026 bond auction. This target exceeds the N450bn raised in January 2025 amid rising fiscal and refinancing pressures. Debt Management Office documents show three reopened FGN bonds will compose the entire N900bn offer.
The size represents a 100 percent year on year increase from the previous January auction. 000b In January 2025, authorities adopted an approach across five year, seven year, and ten year bonds. The government then sought N100bn, N150bn, and N200bn respectively across those maturities.
By contrast, the January 2026 programme signals heavier reliance on Nigeria’s domestic debt market. Officials plan N300bn, N400bn, and N200bn reopenings across 2031, 2034, and 2035 bonds. Ten year instruments now account for about two thirds of the total January auction size.
This structure extends maturity profiles and helps reduce near term refinancing risks. However, elevated coupon rates reflect tight monetary policy and inflation related investor concerns. The 22.60 percent 2035 bond highlights the higher borrowing costs facing the government.
All bonds will sell at N1,000 units with semi annual interest and bullet maturity repayment. Investors must meet a minimum subscription of N50.001m under auction settlement rules. Despite higher borrowing plans, authorities say revenue mobilisation remains the government’s primary fiscal priority.
Finance Minister Wale Edun emphasised domestic resource growth during a Bloomberg interview in Davos. He stressed improved taxation and sustainability efforts amid persistent global economic pressures. The strategy aims to balance funding needs while limiting exposure to volatile external borrowing markets.
