The Federal Government attracted stronger investor demand at its February 2026 bond auction, with total subscriptions climbing to N2.70 trillion.
Results released by the Debt Management Office show N800 billion was offered across three reopened instruments at the February 23 auction.
The 7-year 17.95 per cent FGN JUN 2032 bond recorded subscriptions of N851.59 billion against N400 billion offered.
The 9-year 19.89 per cent FGN MAY 2033 attracted N874.69 billion for N300 billion on offer.
The 10-year 19.00 per cent FGN FEB 2034 received N972.93 billion in bids for N100 billion offered.
Combined subscriptions reached N2.70 trillion for N800 billion offered, translating to a bid-to-offer ratio of about 3.4 times.
This compares to the January auction which recorded total subscriptions of N2.25 trillion against N900 billion offered.
Despite stronger demand, the DMO allotted only N524.28 billion in February, indicating that the government deliberately moderated domestic borrowing volumes.
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Pricing conditions improved significantly in February, with marginal rates settling at 15.74 per cent for both the 7-year and 9-year bonds, and 15.50 per cent for the 10-year bond.
In January, marginal rates were notably higher at 17.62 per cent for the 7-year bond and 17.52 per cent for the 10-year bond.
The 7-year stop rate declined by 188 basis points month-on-month, while the 10-year rate fell by 202 basis points compared to January’s comparable instrument.
February’s auction signals improving funding conditions for the Federal Government, with investor demand strengthening and yields moderating sharply.
The strong appetite for government bonds despite lower yields suggests sustained confidence in Nigeria’s fiscal outlook and monetary policy direction.
Continued demand for government bonds will help the government finance its deficit at more affordable costs.
