DMO to Auction N800 Billion Bonds with Yields Below 20%

The Debt Management Office (DMO) of Nigeria is set to auction N800 billion in reopening bonds on February 23, 2026, with yields anticipated to be below the 20% mark. This auction will include three previous issuances with coupon rates of 17.95% and 19.89%, reflecting a shift towards softer yields compared to recent highs.

The bonds will offer semi-annual interest and will be bullet-repaid at maturity. The DMO's strategy aims to consolidate and enhance liquidity in the market rather than fragment it with entirely new issuances.

The upcoming auction's coupon rates are expected to attract investor demand, as recent market data indicates a downward trend in yields across Nigeria's fixed income space. The average yield for FGN bonds has slipped to around 16.0% by mid-February 2026, suggesting a stronger appetite for sovereign debt.

This environment is expected to improve liquidity and support potential monetary policy adjustments.