— Government targets institutional investors with 5-year and 7-year re-issues
The Debt Management Office (DMO) will on Monday, October 27, 2025, reopen two Federal Government of Nigeria (FGN) bond series — AUG 2030 and JUN 2032, to raise N260 billion, with yields approaching 18 percent.
According to the offer circular, the auction comprises N130 billion each of the 17.945% FGN AUG 2030 (5-year) and 17.95% FGN JUN 2032 (7-year) bonds. The settlement date is scheduled for Wednesday, October 29, 2025.
The proceeds from the reissuance are expected to help finance budgetary obligations and support the government’s domestic borrowing programme.
The reopened instruments, priced based on yield-to-maturity levels at auction clearing, include accrued interest in settlement calculations. With near-18% coupon rates, analysts anticipate strong participation from pension funds, asset managers, and commercial banks seeking stable returns amid high domestic interest rates.
Both bonds carry the full faith and credit of the Federal Government of Nigeria, qualifying as permissible investments under the Trustee Investments Act. They are also tax-exempt for pension funds and some institutional investors under the Companies Income Tax Act (CITA) and Personal Income Tax Act (PITA).
Already listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange, the instruments enjoy high market liquidity, enabling banks to use them in meeting statutory liquidity ratio requirements.
The offer primarily targets institutional and high-net-worth investors, with a minimum subscription of N50,001,000, and subsequent multiples of N1,000 per unit. Authorized Primary Dealer Market Makers (PDMMs), including top-tier commercial and merchant banks, will handle investor applications and distribution.
The reopening follows the Central Bank of Nigeria’s Treasury Bills auction on October 22, where N650 billion worth of maturing bills were rolled over across three tenors — 91, 182, and 364 days, at the rates up to 16.14%. The strong subscription levels, exceeding N750 billion, reflected sustained investor confidence in Nigeria’s fixed-income market.
The latest bond auction underscores the Federal Government’s strategy of deepening domestic debt markets to fund its fiscal deficit while maintaining market confidence.
The FGN Bond Auction at a Glance: Total Offer Size: N260 billion, Instruments: 1. N130bn – 17.945% FGN AUG 2030 (5-year), 2. N130bn – 17.95% FGN JUN 2032 (7-year), Auction Date: October 27, 2025, Settlement Date: October 29, 2025, Coupon: ~17.95%, Minimum Subscription: N50,001,000, Interest Payment: Semi-annual, Listing: NGX & FMDQ OTC and Credit Backing: Full faith of the Federal Government
The auction reaffirms DMO’s commitment to maintaining investor confidence and diversifying government funding sources amid Nigeria’s evolving macroeconomic condition.
