The Federal Government of Nigeria has allocated N136 billion in its latest bond auction, comprising five- and seven-year Federal Government of Nigeria (FGN) bonds, as announced by the Debt Management Office (DMO) on August 26, 2025. The five-year FGN August 2030 bond secured N46.005 billion, while the seven-year FGN June 2032 bond garnered N90.157 billion, with marginal rates set at 17.945% and 18%, respectively. Both bonds, auctioned on August 25 and set to settle on August 27, reflect robust investor appetite in Nigeria’s fixed-income market.
The DMO offered N100 billion for each bond but saw oversubscription, with bids totaling N102.355 billion for the five-year bond (ranging from 12.5% to 21.5%) and N165.807 billion for the seven-year bond (ranging from 15% to 22%). The June 2032 bond retains its original 17.95% coupon rate. This auction aligns with Nigeria’s strategy to fund critical projects and manage its debt portfolio, offering investors attractive returns amid a high-interest-rate environment with the Central Bank’s Monetary Policy Rate at 27.5%.
The issuance follows the DMO’s recent announcement of a N200 billion savings bond offering, including a reopening of the June 2032 bond. Nigeria’s economic landscape, marked by a 67.12% surge in capital importation to $5.64 billion in Q1 2025 and a 39.98% year-to-date gain in the Nigerian Exchange, supports investor confidence. However, challenges like naira volatility (N1,560/$1 in the parallel market) and 21.88% inflation in July underscore the need for prudent fiscal management to sustain market stability.
