The Nigerian Exchange (NGX) has emerged as a powerhouse for capital raising, with the Federal Government of Nigeria (FGN) and select corporate players securing over N3.4 trillion through bond issuances from January to August 2025, according to the latest NGX market data.
Federal Government’s Bond Blitz
The FGN raised approximately N759.7 billion through 14 new bond issuances listed on the NGX between February and August 2025. These bonds, priced at N1,000 per unit, boasted a combined market capitalization of N759.7 billion. The standout was the 22.60% FGN JAN 2035 bond, which alone accounted for N368.3 billion—nearly half the total value of new listings. Other key issuances included the 17.173% FGS MAY 2028 (N3.47 billion) and the 18.799% FGS FEB 2028 (N3.06 billion), with February 2025 marking the peak of activity.
Additionally, the government tapped N2.6 trillion through 12 supplementary bond listings, issued under existing programs with matching ISINs, coupons, and maturities. The largest tranche, listed on March 10, was the 18.50% FGN FEB 2031 bond at N605.03 billion, followed by a N449.77 billion issuance under the 19.89% FGN MAY 2033 series on May 15. Other notable tranches included N327.69 billion (May 2033) and N305.36 billion (19.30% FGN APR 2029).
Coupon rates for these bonds ranged from 15.762% to 22.60%, reflecting the high cost of borrowing amid Nigeria’s inflationary pressures and tight liquidity. The mix of maturities, spanning 2027 to 2035, catered to both retail and institutional investors, with shorter- and medium-term bonds (2027–2028) drawing particular interest due to their balance of yield and duration.
Corporate Contributions
On the corporate front, three commercial paper issuances added N84.5 billion to the NGX’s ledger:
- Dangote Cement Plc issued N38.2 billion in 10-year, 23.50% Fixed Rate Senior Unsecured Bonds due 2034, listed on March 20.
- Craneburg EKSG Motorway Company Plc raised N32.5 billion via 20-year, 22% Senior Guaranteed Fixed Rate Infrastructure Bonds due 2045, listed on July 21.
- TSL SPV Plc contributed N5 billion through 21% Series 1 Senior Guaranteed Fixed Rate Infrastructure Bonds due 2035, listed on June 25.
Additionally, Coronation Asset Management Limited listed 87.9 million units of its Series 1 Coronation Infrastructure Fund, valued at N8.79 billion, further diversifying the corporate offerings.
Investor Confidence Holds Firm
Despite concerns over Nigeria’s mounting debt, demand for government securities remains robust, driven by their perceived safety and attractive yields. “Investors are seizing the chance to lock in high returns, especially on longer-dated bonds, betting on future inflation relief,” said Aruna Keriba, a seasoned NGX stockbroker. “The strong subscription rates, particularly for 7- to 10-year bonds, signal trust in the government’s credit and the NGX’s role as a transparent trading platform.”
The listings align with the Debt Management Office’s (DMO) 2025 strategy to prioritize domestic borrowing to finance a projected N13.08 trillion budget deficit, with N7.37 trillion earmarked from local markets. This approach aims to shield Nigeria from foreign exchange volatility, given the limited access to international financing.
Looking Ahead
The robust activity on the NGX reflects a strategic push to deepen Nigeria’s capital markets while addressing fiscal pressures. Analysts expect continued investor enthusiasm for high-yield bonds, though the government faces the challenge of balancing borrowing costs with long-term debt sustainability. For corporates, the success of these issuances signals growing confidence in Nigeria’s private sector to drive infrastructure and industrial growth.
