Nigeria DMO to Auction ₦800bn FGN Bonds as Yields Fall Below 20%

Nigeria’s debt office tests softer borrowing costs amid easing yields and strong institutional demand.

The Debt Management Office Nigeria will auction ₦800 billion in reopened Federal Government bonds on February 23, 2026, with settlement on February 25. The offer includes:

₦400bn – 17.95% FGN June 2032
₦300bn – 19.89% FGN May 2033
₦100bn – 19.00% FGN February 2034
All instruments pay semi-annual interest with bullet repayment at maturity and require a minimum subscription of ₦50 million.

The sub-20% coupons signal easing borrowing costs compared to prior auctions that cleared above 22%. Secondary market data shows average FGN bond yields declining toward 16%, reflecting liquidity surplus and strong domestic institutional demand. The bonds are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, qualifying as liquid assets for banks and eligible for pension funds.