Nigeria Doubles January 2026 Bond Auction to ₦900 Billion

The Federal Government of Nigeria (FGN) has increased its January 2026 bond auction to ₦900 billion, up from the ₦450 billion projected for the same month in 2025, in a move to show the government’s growing reliance on domestic funding.

According to Nigeria Housing Market, the Debt Management Office (DMO) revealed the expanded offer in a circular released on Monday.

The auction was scheduled for January 26, 2026, and the settlement for January 28.

The DMO mentioned that three previously issued bonds with medium- to long-term maturities will be reopened as part of the enlarged program. They include:

• ₦300B 7-year bond (matures Feb 2031) at 18.5% interest,
• ₦400B 10-year bond (matures Feb 2034) at 19% interest,
• ₦200B 11-year bond (matures Jan 2035) at 22.6% interest.

Each bond unit is priced at ₦1,000, with investors required to commit at least ₦50.001 million and increase subscriptions in increments of ₦1,000.

Under a bullet repayment plan, principle will be fully repaid at maturity, with coupon interest paid semi-annually.

Fiscal Context and Market Implications

The auction is coming when several government bonds are reaching maturity, meaning the Federal Government must repay investors in January.

Altogether, Nigeria is expected to return more than ₦1 trillion to domestic bondholders this month, with a significant portion linked to the 12.5% FGN bond scheduled to mature on January 22.

According to Punch, Finance Minister Wale Edun, speaking at the World Economic Forum, said the government is prioritizing efforts to boost domestic revenue while still having access to capital markets as needed.

He reaffirmed the government’s long-term goal of increasing revenue generation and lowering reliance on debt.

Investor Confidence and Market Outlook

In conclusion, the outcome of the bond auction will measure investor confidence in Nigeria’s financial markets in January.

While low uptake may raise questions about liquidity, interest rates, and the sustainability of debt, strong demand may signify optimism about the government’s fiscal plans and the overall economy.

In this sense, the outcome of the auction may provide a preview of the performance of Nigeria’s domestic debt markets and economy in 2026.