The Federal Government of Nigeria, through the Debt Management Office (DMO), has announced it will auction N300 billion worth of bonds on May 26, 2025, as part of efforts to finance the national budget and strengthen the local debt market.
Details of the upcoming auction, released via an official circular on Thursday, indicate two reopened instruments will be offered:
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N100 billion of the 19.30% FGN bond due April 2029 (five-year tenor)
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N200 billion of the 19.89% FGN bond due May 2033 (nine-year tenor)
Each bond is priced at N1,000 per unit, with a minimum subscription amount of N50,001,000, and subsequent bids required in multiples of N1,000. Interest will be disbursed on a semi-annual basis.
Though coupon rates are fixed at 19.30% and 19.89%, investors will pay a market-clearing price based on yield-to-maturity and accrued interest, as determined at the auction.
The DMO emphasized that the bonds are supported by the full faith and credit of the Federal Government, offering investors a high level of security.
The instruments will also be listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, enhancing liquidity and tradability. Interested participants are advised to reach out to Primary Dealer Market Makers (PDMMs) for access.
This bond issuance aligns with the government’s objective to leverage the domestic capital market to meet funding needs while promoting financial market development.
