DMO auctions N800 billion reopening bonds on Monday at Yields below 20%

The Debt Management Office (DMO) Nigeria will on Monday, February 23, auction N800 billion in reopened Federal Government bonds, with yields set below the 20% mark.

Acting for the Federal Government of Nigeria, the agency is rolling out three previously issued instruments carrying coupon rates between 17.95% and 19.89%, underscoring a shift toward softer stops compared to recent highs.

With settlement due February 25, 2026, the bonds offer semi-annual interest and bullet repayment at maturity, positioning the sale as a strategic reopening at rates now retreating from last year’s peak.

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What the data is saying

The Debt Management Office Nigeria plans to raise ₦800 billion through a Federal Government bond auction on February 23, 2026, with settlement on February 25, 2026. The offer is made on behalf of the Federal Government of Nigeria.

**Key highlights **

• Total offer size: N800 billion
• N400 billion – 17.95% FGN Bond due June 2032 (7-year tenor, re-opening)
• N300 billion – 19.89% FGN Bond due May 2033 (10-year tenor, re-opening)
• N100 billion – 19.00% FGN Bond due February 2034 (10-year tenor, re-opening)

Key details

• Interest payment: Semi-annual (twice a year)
• Repayment: Bullet repayment at maturity
• Minimum subscription: N50,001,000
• Backed by: Full faith and credit of the Federal Government of Nigeria

More insights

As re-openings, the coupon rates are already fixed, meaning successful bidders will pay a price corresponding to the yield-to-maturity that clears the auction, plus accrued interest.

This structure allows the DMO to consolidate liquidity in existing lines rather than fragment the market with entirely new issues.

When compared with January 2026 and December 2025 issuances, the rates are reasonably lower for two reopened bonds:

• N400 billion of 17.95% FGN June 2032 (compared with Jan. 26, 2026 auction: N300bn Feb. 2031 issued at 18.5%),
• N100 billion of 19.00% FGN February 2034 (compared with Jan. 2026 auction: N200bn Jan. 2035 issued at a premium 22.60%).
• The 19.89% and below yield levels highlight easing cost of borrowing, reflecting recent deflationary trend, excess liquidity conditions and investor demand pressures.
• The bonds are eligible for pension funds and other tax-exempt institutional investors. Their status enhances their attractiveness.

They are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, ensuring secondary market liquidity and price transparency for investors seeking tradable sovereign assets.

FGN bonds qualify as liquid assets for banks’ liquidity ratio calculations, further broadening demand across the financial system.

What you should know

Although the upcoming auction on February 23 carries coupon rates approaching 20%, recent market data shows a downward trend in yields across Nigeria’s fixed-income space as investor demand has strengthened.

Secondary market activity analysed by Nairametrics indicates broad-based yield compression on Treasury bills, OMO bills and FGN bonds, with average FGN bond yields slipping to around 16.0% in mid-February 2026.

• Broad-based yield compression has been observed across Treasury bills, OMO bills and FGN bonds.
• Average FGN bond yields declined to about 16.0% in mid-February 2026.
• Strong purchases from domestic institutional investors have driven demand.
• Financing costs for the government appear to have eased compared with previous auctions.

The easing yield environment reflects a stronger appetite for sovereign debt at slightly lower stops, supported by improved liquidity expectations and potential monetary policy adjustments, even as longer-term instruments remain attractive for investors seeking yield stability.

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