Key Points

• FG plans to raise ₦900bn from January 2026 bond sale, double last year’s amount.

• Most of the borrowing will come from long-term bonds due in 2031 to 2035.

• High interest rates mean the government will pay more to borrow.

The Federal Government plans to borrow more money at the start of 2026. It wants to raise up to ₦900 billion from its January bond sale.

This is twice the ₦450 billion it planned to borrow in January 2025. The move shows rising pressure on government finances and the need to pay back old debts.

Documents from the Debt Management Office show that the government will sell three existing bonds again, with a total value of ₦900 billion.

This means the amount on offer has increased by 100 percent compared to last year.

How Last Year’s Borrowing Compared

In January 2025, the government borrowed less. It offered three bonds with different repayment periods.

These included a five-year bond, a seven-year bond, and a ten-year bond. Altogether, it planned to raise ₦450 billion at the time, when funding needs were lower even though interest rates were still high.

More Focus On Long-Term Debt

The January 2026 plan shows that the government is leaning more on borrowing from within the country.

It plans to raise ₦300 billion from a bond due in 2031, ₦400 billion from a bond due in 2034, and ₦200 billion from a bond due in 2035.

Most of the money will come from long-term bonds. About ₦600 billion will be raised from ten-year bonds alone. This is much higher than the ₦200 billion raised from similar bonds in January 2025.

The move suggests the government wants to push repayment further into the future and reduce the need to refinance debts too soon.

High Interest Rates Raise Borrowing Cost

Interest rates on the bonds remain high. The 2035 bond carries a 22.6 percent interest rate, which is higher than what the government paid for similar bonds last year. This shows that borrowing has become more expensive.

The Debt Management Office said the bonds will sell at ₦1,000 per unit. Investors must buy at least ₦50 million worth.

Interest will be paid twice a year, and the full amount will be paid back at maturity.

FG Says It Wants To Borrow Less

Despite the higher borrowing plan, the Minister of Finance, Wale Edun, said the government wants to rely less on loans.

Speaking in Davos, Switzerland, he said the focus is now on raising more revenue at home and reducing dependence on borrowing, even though Nigeria can still borrow from foreign markets if needed.