The Federal Government of Nigeria has significantly increased its planned domestic borrowing for January 2026, announcing an intention to raise N900 billion through the reopening of federal bonds, according to documents released by the Debt Management Office (DMO).
This amount represents a 100 per cent increase compared with the N450 billion targeted in January 2025.
The DMO circular shows that the January 2026 auction will feature three reopened Federal Government of Nigeria (FGN) bonds with a combined size of N900 billion. The auction is scheduled for January 26, 2026, with settlement set for January 28, 2026.
Under the offer, the government plans to raise N300 billion from an 18.50 per cent FGN February 2031 bond, N400 billion from a 19.00 per cent FGN February 2034 bond and N200 billion from a 22.60 per cent FGN January 2035 bond.
These instruments span medium‑ and long‑term tenors and are aimed at meeting funding needs while offering investors predictable returns.
The move to raise N900 billion comes amid ongoing fiscal pressures as government spending commitments remain elevated and revenue generation continues to lag relative to needs.
Analysts say the increased borrowing underscores the administration’s reliance on the domestic debt market to finance budgetary shortfalls.
In contrast, the January 2025 programme saw the government offer N450 billion across three bonds covering five‑, seven‑ and ten‑year maturities, reflecting a more restrained borrowing posture at that time. The larger offering this year suggests heightened financing requirements.
FGN bonds are tradable securities that appeal to institutional investors such as pension funds, insurance companies and other market participants seeking stable long‑term investments.
The bonds qualify as government securities under tax laws and count as liquid assets for banks when calculating regulatory ratios.
Investors in the January auction will be able to participate through authorised Primary Dealer Market Makers, with minimum subscription levels and fixed coupon structures outlined in the offer circular. Interest is payable semi‑annually, and principal is repaid in full at maturity under a bullet repayment structure.
Economists note that widening fiscal deficits and the need to refinance maturing obligations have driven greater use of domestic borrowing.
Bond market activity supports government funding but also raises concerns about the sustainability of rising debt levels and the potential impact on interest rates and private sector credit.
The January 2026 bond auction forms part of the Federal Government’s broader strategy to deepen Nigeria’s domestic debt market and provide avenues for long‑term investment, even as it seeks to balance fiscal sustainability with infrastructure and service delivery priorities.
