The Debt Management Office (DMO) has announced plans to re-open two Federal Government of Nigeria (FGN) bonds worth N350 billion for public auction, scheduled for April 28, 2025, with settlement on April 30, 2025.
The offer, which forms part of the federal government’s domestic borrowing strategy, will be available for subscription at N1,000 per unit.
The DMO in a notice disclosed that the bond auction will comprise two tranches: a five-year savings bond and a nine-year savings bond.
The first tranche, valued at N200 billion, is due to mature in April 2029 and carries an interest rate of 19.30 per cent per annum. The second tranche, worth N150 billion, will mature in May 2033 with a yield of 19.89 per cent per annum.
Both bonds are reopenings of previously issued instruments, meaning the coupon rates have already been set.
The DMO explained that successful bidders will pay a price corresponding to the yield-to-maturity that clears the auction, along with any accrued interest up to the settlement date.
Subscriptions for the bonds are offered at N1,000 per unit, subject to a minimum subscription of N50,001,000, and must be made in multiples of N1,000 thereafter.
The DMO noted that interest on the bonds is payable semi-annually, while principal repayment will be made in full at maturity through a bullet payment.
The debt office emphasized that the bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged against the general assets of the country. They qualify as liquid assets for banks’ liquidity ratio calculations, and are also deemed eligible securities for investment by trustees, in accordance with the Trustee Investment Act.
Additionally, the bonds are recognized as government securities under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), providing tax exemption benefits for pension funds and other institutional investors.
The instruments are listed on both the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, offering secondary market trading options for investors seeking liquidity.
This bond issuance is part of the Federal Government’s broader fiscal strategy to finance budget deficits, support infrastructure development, and deepen the domestic bond market.
