The Federal Government has opened subscriptions for ₦200 billion worth of bonds in its August 2025 auction, according to a circular published by the Debt Management Office (DMO) yesterday.
The auction, scheduled for August 25, 2025, with settlement fixed for August 27, 2025, is being conducted in line with the DMO (Establishment) Act, 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, Laws of the Federation of Nigeria, 2004.
The offer comprises two re-openings:
- ₦100 billion FGN JUL 2030 bond with a five-year tenor.
- ₦100 billion 17.95% FGN JUNE 2032 bond with a seven-year tenor.
According to Channels Tv, each unit is priced at ₦1,000, with a minimum subscription of ₦5,000 and additional investments allowed in multiples of ₦1,000. Investors may subscribe up to ₦50 million.
The interest rate will be determined by the yield-to-maturity of bids that clear the auction, as these are re-openings of previously issued bonds. Interest will be paid semi-annually, while the principal will be repaid in full at maturity.
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The announcement follows the successful completion of the July 2025 bond auction, where the DMO allotted ₦185.9 billion across two reopened bond offerings.
The July auction attracted ₦39.075 billion in subscriptions for the 5-Year FGN APR 2029 bond and ₦261.597 billion for the 7-Year FGN JUN 2032 bond.
Out of these, ₦13.430 billion was allotted for the 2029 bond and ₦172.502 billion for the 2032 bond—bringing the total to ₦185.932 billion, exceeding the initial offer size.
Despite retaining coupon rates of 19.30% and 17.95% respectively, the July allotments cleared at 15.69% for the five-year bond and 15.90% for the seven-year bond.
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Analysts suggest the lower marginal rates reflect declining yield expectations, possibly due to investor optimism about moderating inflation or a stable monetary policy outlook.
A total of 149 bids were submitted in July—40 for the 2029 maturity and 109 for the 2032 maturity—with 74 successful bids recorded (15 and 59 respectively).
Image Credit: Channels TV
