The Debt Management Office (DMO) has announced the offer of Federal Government of Nigeria (FGN) bonds worth ₦100 billion for public subscription at an interest rate of 19.3 percent per annum, payable semi-annually. The auction, scheduled for June 23, 2025, will consist of two tranches: a ₦50 billion five-year reopening bond due in April 2029, and a fresh ₦50 billion seven-year bond maturing in June 2032.
The bond offer comes at a time when the Federal Government is seeking to raise funds to finance its fiscal operations and stimulate economic activities through long-term investment in infrastructure and other national priorities. According to details released by the DMO, the minimum subscription amount for the auction is ₦50,001,000, and subsequent subscriptions must be in multiples of ₦1,000.
In its official announcement, the DMO stated: “On behalf of the Federal Government of Nigeria, the Debt Management Office offers for subscription by auction ₦50,000,000,000 – 19.3% FGN APR 2029 (5-Year Re-opening) and ₦50,000,000,000 – FGN JUNE 2032 (7-Year New).” The settlement date for the bonds is set for June 25, 2025.
The re-opened April 2029 bond was previously issued and is being offered again to deepen market liquidity. For the re-opening, successful bidders will pay a price that reflects the yield-to-maturity (YTM) bid that clears the auction, plus any accrued interest. The newly introduced June 2032 bond is being issued for the first time and carries the same fixed interest rate of 19.3%.
These bonds qualify as securities in which trustees may invest under the Trustee Investment Act. They also qualify as government securities for the purposes of tax exemptions under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), particularly benefiting pension funds and other qualifying institutional investors.
The bonds will be listed on both the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, ensuring liquidity and transparency in secondary market trading. Furthermore, the bonds qualify as liquid assets for banks’ liquidity ratio calculations, thereby enhancing their attractiveness to financial institutions.
The DMO emphasized that these bonds are fully backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of the country. This makes them a relatively low-risk investment option for individuals, pension funds, asset managers, insurance firms, and other institutional investors seeking fixed income returns.
The agency encouraged interested investors to approach accredited financial institutions, including Access Bank Plc, Citibank Nigeria Ltd, Coronation Merchant Bank Ltd, Ecobank Nigeria Ltd, FBNQuest Merchant Bank Ltd, First Bank of Nigeria Ltd, First City Monument Bank Plc, FSDH Merchant Bank Ltd, Rand Merchant Bank Nigeria Ltd, Guaranty Trust Bank Ltd, Stanbic IBTC Bank Ltd, Standard Chartered Bank Nigeria Ltd, United Bank for Africa Plc, and Zenith Bank Plc, to place their bids and obtain more information.
Market analysts have noted that the 19.3 percent coupon reflects the high-interest-rate environment as the Central Bank of Nigeria (CBN) continues to tighten monetary policy to manage inflation and stabilize the naira. This is also seen as part of broader fiscal efforts to attract domestic capital into government securities, thereby reducing the country’s reliance on external borrowing.
Fixed income investors see the auction as a favourable opportunity to lock in high yields amid ongoing volatility in the equity and foreign exchange markets. With the naira trading around ₦1,548 on the official market and higher in the parallel market, investment in government bonds provides a hedge against currency devaluation and offers predictable cash flow.
The DMO’s consistent issuance of bonds is part of the government’s domestic borrowing plan to fund part of the budget deficit as outlined in the 2025 Appropriation Act. The bonds also help in managing liquidity in the banking system and developing the domestic debt market.
Investors are advised to conduct proper risk assessments and consult with financial advisers before subscribing to the offer. The DMO will announce the results of the auction shortly after completion, detailing the allotment figures and clearing rates for the respective tenors.
