The Federal Government of Nigeria (FGN) and some corporate organisations have raised more than N3.4 trillion through the Nigerian Exchange (NGX) between January and August 2025. This was disclosed in the NGX’s latest listing report, which covered both new and supplementary bond listings.
According to the report, the Federal Government accounted for the bulk of the capital raised, with N3.4 trillion generated through multiple bond issuances, while corporate firms raised a combined total of N84.5 billion within the same period. Market analysts say the sustained volume of bond listings shows continued investor confidence in Nigeria’s fixed-income market despite inflationary pressures and high interest rates.
New bond listings by the Federal Government reached approximately N759.7 billion between February and August 2025, spread across 14 newly admitted Federal Government Bonds (FGNs). These bonds had a combined market capitalization of N759.7 billion, based on a N1,000-unit price per bond. The largest single issue during the period was the 22.60% FGN JAN 2035 bond, which accounted for N368.31 billion. Other notable listings included the 17.173% FGS MAY 2028 bond worth N3.47 billion and the 18.799% FGS FEB 2028 bond valued at N3.06 billion.
February 2025 recorded the highest activity, contributing over N369 billion in new listings, largely driven by the FGN JAN 2035 issue. The bonds carried coupon rates ranging between 15.762% and 22.60%, reflecting elevated domestic borrowing costs amid persistent inflation and tight liquidity conditions in the money market.
The bond maturities ranged from two to ten years, targeting both retail and institutional investors. Short- and medium-term securities (maturing between 2027 and 2028) dominated the listings, suggesting that investors prefer mid-term instruments with stable returns, even as yields on longer-dated papers remain high.
In addition to the new listings, the Federal Government raised about N2.6 trillion through supplementary bond admissions on the Exchange between January and August 2025. NGX data reviewed by financial analysts revealed that these supplementary listings involved 12 tranches of FGNs with coupon rates between 18.50% and 19.89% and maturities extending from 2029 to 2033.
The largest tranche was recorded on March 10, 2025, when the government listed N605.03 billion under the 18.50% FGN FEB 2031 series. Another major tranche, valued at N449.77 billion, was listed on May 15 under the 19.89% FGN MAY 2033 bond. Others included N327.69 billion in the 19.89% FGN MAY 2033 bond listed on April 25 and N305.36 billion under the 19.30% FGN APR 2029 series listed in March.
Analysts explained that the bonds’ attractive coupon rates were aimed at striking a balance between investor demand and the government’s borrowing costs. The maturities, which range from 2029 to 2033, were also designed to spread the government’s debt obligations and reduce refinancing pressure on future budgets.
While the Federal Government dominated the bond market, a few corporates made their mark as well. The combined corporate bond issuance amounted to N84.5 billion, with Dangote Cement Plc leading the list through its N38.2 billion, 10-year 23.50% Fixed Rate Senior Unsecured Bond due in 2034. Craneburg EKSG Motorway Company Plc followed with N32.5 billion in 20-year 22% Senior Guaranteed Fixed Rate Infrastructure Bonds due in 2045, while TSL SPV Plc issued N5 billion in 21% Series 1 Senior Guaranteed Fixed Rate Infrastructure Bonds due in 2035.
In addition, Coronation Asset Management Limited listed 87.9 million units of its Series 1 Coronation Infrastructure Fund at N100 per unit, amounting to N8.79 billion. These listings, according to the NGX, demonstrate increased investor participation in infrastructure-related financial instruments.
Despite rising debt levels, investors continue to show strong interest in government-backed securities. According to Mr. Aruna Keriba, a senior stockbroker at the Nigerian Exchange, the high subscription levels recorded across several bond tranches indicate investors’ sustained confidence in sovereign instruments.
“Investors are locking into longer-dated bonds at double-digit yields, expecting that rates may decline once inflation stabilizes,” Keriba said. “The listings have also boosted liquidity and transparency in Nigeria’s fixed income market.”
Financial experts believe that the government’s reliance on domestic borrowing is part of its strategy to limit exposure to external debt risks. The Debt Management Office (DMO) had earlier stated that domestic instruments would play a major role in bridging Nigeria’s 2025 budget deficit, projected at N13.08 trillion.
In the Medium-Term Expenditure Framework (MTEF), the Federal Government indicated that about N7.37 trillion of the budget deficit would be financed through domestic borrowing. The DMO said this approach will help minimize foreign exchange volatility and ensure that debt servicing obligations remain sustainable in the medium term.
