The Federal Government of Nigeria has announced a new bond offering worth ₦80 billion through the Debt Management Office (DMO), with the auction scheduled for July 28, 2025, and settlement set for July 30, 2025.
This issuance consists of two re-opened FGN bonds: ₦20 billion for the 19.30% FGN APR 2029 bond (5-year tenor) and ₦60 billion for the 17.95% FGN JUN 2032 bond (7-year tenor).
The bonds, priced at ₦1,000 per unit, require a minimum subscription of ₦5,000, with additional purchases in multiples of ₦1,000. Investors can subscribe for up to ₦50 million, making the offer accessible to both retail and institutional buyers.
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According to the DMO, this bond issuance aligns with the Debt Management Office (Establishment) Act, 2003 and the Local Loans Act, CAP. L17, Laws of the Federation of Nigeria, 2004.
Interest rates will be determined by the yield-to-maturity bid that clears the volume at auction.
Successful bidders will receive semi-annual interest payments, while the full principal will be repaid at maturity through bullet repayment.
This month’s ₦80 billion offer is lower than the ₦100 billion auctioned in June. During that auction, the five-year bond saw 30 bids totaling ₦41.685 billion, but only two bids were successful, with just ₦1.050 billion allotted.
Conversely, the newly issued seven-year bond attracted significant interest, with 209 bids and ₦561.17 billion in subscriptions—out of which 41 bids were accepted, and ₦98.950 billion was allotted.
The DMO’s bond auctions are part of the federal government’s broader strategy to finance budget deficits and fund key infrastructure projects while providing secure investment options for the public.
Image Credit: CHannels TV
