The Debt Management Office (DMO) has announced a new Federal Government of Nigeria (FGN) bond auction, offering a total of N460 billion to investors to fund budgetary needs and deepen the domestic capital market.
The auction, scheduled for December 15, 2025, will feature the reopening of two existing bonds: N230 billion of the 17.945% FGN AUG 2030 bond (a 5-year reopening) and an equal amount of the 17.95% FGN JUN 2032 bond (a 7-year reopening). Settlement for successful bids is set for December 17.
This offering continues the government’s strategy of leveraging the local debt market. The structure mirrors a similar N460 billion auction held in November, which saw strong investor demand with total bids exceeding N657 billion, representing an oversubscription of over 120%.
For this auction, the units of sale are set at N1,000 each, with a minimum subscription of N50,001,000. As these are reopenings of existing bonds, investors will bid on the price based on the yield-to-maturity they are willing to accept, rather than on a new coupon rate. The bonds pay interest semi-annually, providing predictable income for institutional investors like pension funds and insurance companies.
The FGN bonds carry several key benefits under Nigerian law. They qualify as secure trustee investments, enjoy tax-exempt status for pension funds and other regulated entities, and are listed on both the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange to ensure liquidity and transparency. They also count as liquid assets for banking sector liquidity ratio calculations.
The auction provides an opportunity for domestic investors to access medium-to-long-term government securities with bullet repayments at maturity, supporting the mobilization of long-term savings within the Nigerian economy.
