The Debt Management Office (DMO) has successfully completed its Federal Government bond auction, allotting approximately N186 billion across two reopened bond offerings.
According to figures released on the DMO website, the auction fetched N39.075 billion in total subscriptions for the five-year FGN APR 2029 bond and an impressive N261.597 billion for the seven-year FGN JUN 2032 bond.
Out of these bids, the DMO allotted N13.430 billion for the APR 2029 bond and N172.502 billion for the JUN 2032 bond—amounting to a total allotment of about N185.932 billion, well over the initial offer size.
The auction, held on July 28, 2025, featured the re-opening of two previously issued FGN bonds: N20 billion for the 19.30% FGN APR 2029 bond with a five-year tenor, and N60 billion for the 17.95 per cent FGN JUN 2032 bond with a seven-year maturity.
According to the DMO, the bond issuance complied with the DMO (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, CAP. L17, Laws of the Federation of Nigeria 2004.
Each bond unit was priced at N1,000, with a minimum subscription amount of N50,001,000. Additional subscriptions must be made in multiples of N1,000.
Although the coupon rates were predetermined, successful bidders at the auction paid a price based on the yield-to-maturity that cleared the offered volume, along with any accrued interest from the last interest payment date up to the settlement date.
Interest on both bonds is payable semi-annually, providing bondholders with regular income during the tenor of the instruments.
The bonds will be repaid in full on their respective maturity dates through bullet repayment, meaning the principal will be paid back in a single lump sum.
While the bonds retained their original coupon rates of 19.30 per cent and 17.95 per cent respectively, they were allotted at marginal rates of 15.69 per for the five-year bond and 15.90 per cent for the seven-year bond.
This reflected a decline in yield expectations, possibly indicating that investors anticipate easing inflationary pressures or a stable monetary policy environment in the medium term.
The bond re-openings attracted a total of 149 bids-40 for the 2029 maturity and 109 for the 2032 maturity. Of these, 74 bids were successful (15 and 59, respectively).
The settlement day is scheduled for July 30, 2025.
The July 2025 bond auction allotment was more than the N100 billion offered in June.
The first instrument offered was a five-year reopening bond with a coupon rate of 19.30 per cent, set to mature on April 17, 2029.
The bond attracted 30 bids totalling N41.685 billion in subscriptions, signalling strong investor demand.
However, only two bids were successful, with a final allotment of N1.050 billion.
The second instrument, a newly issued seven-year bond carrying a 17.95 per cent coupon rate and maturing on June 25, 2032, garnered 209 bids, with subscriptions amounting to N561.170 billion.
Out of these, 41 bids were accepted, and N98.950 billion was allotted.
The marginal rates for the successful bids were as follows: 17.75 per cent for the 19.30 per cent FGN APR 2029 (Re-opening, five-year Bond), and 17.95 per cent for the 17.95 per cent FGN JUN 2032 (new, seven-year bond)
The funds raised from the bond auction would be used to support the Federal Government’s budget and finance development projects
The successful bond auction is expected to contribute to economic growth by providing funding for development projects and supporting government initiatives.
The strong demand for the bonds reflected investors’ confidence in the Nigerian economy and the government’s commitment to managing its debt obligations.
The DMO played a critical role in managing Nigeria’s debt, ensuring that the country’s borrowing was sustainable and aligned with its economic objectives.
The DMO’s bond auctions are an essential mechanism for raising funds for the government, providing a transparent and efficient way to access the capital market
