Nigerian Government Targets ₦900 Billion in Local Debt Market Through Bond Auctions

The Nigerian government aims to raise ₦900 billion in the local debt market through bond auctions in January 2026, doubling the target from the previous year. This move reflects a shift towards heavier reliance on domestic borrowing to fund obligations due to growing fiscal pressures.

The auction will feature three reopened Federal Government of Nigeria bonds with a total size of ₦900 billion, representing a significant increase from the previous year. The government plans to issue bonds across five-year, seven-year, and ten-year tenors, with a focus on longer-dated instruments.

The high coupon rates on the reopened bonds indicate tight monetary conditions and persistent inflation concerns.