FG Doubles January Bond Auction to N900bn Amid Rising Fiscal Needs
The Federal Government plans to significantly increase domestic borrowing in January 2026, aiming to raise N900 billion from its bond auction—double the N450 billion targeted in January 2025. The move reflects growing fiscal pressures and refinancing requirements.
The January 2026 auction will feature three reopened Federal Government of Nigeria (FGN) bonds, totaling N900 billion, marking a 100 percent year-on-year increase in the size of the offering. By comparison, the government offered N450 billion in January 2025 across three bonds in the five-year, seven-year, and ten-year segments.
This year’s programme shows a greater reliance on longer-term instruments, with ten-year bonds accounting for N600 billion, or two-thirds of the total auction, compared with N200 billion in ten-year paper in January 2025. The reopening includes:
- N300 billion from the 18.50 percent FGN February 2031 bond
- N400 billion from the 19.00 percent FGN February 2034 bond
- N200 billion from the 22.60 percent FGN January 2035 bond
The higher 22.60 percent coupon on the January 2035 bond reflects the rising cost of borrowing, while the auction will sell bonds at N1,000 per unit with a minimum subscription of N50,001. Interest will be paid semi-annually, with bullet repayment at maturity. Prices for reopened bonds will be based on the yield that clears the auction plus accrued interest.
Despite the larger borrowing plan, the government emphasized a focus on domestic resource mobilisation to reduce reliance on borrowing. Efforts are being made to strengthen revenue collection and enhance fiscal sustainability amid global economic pressures.
The strategy signals a balancing act between meeting immediate financing needs and shifting towards longer-term fiscal prudence, while maintaining access to both domestic and international debt markets if necessary.
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