The Debt Management Office (DMO), acting for the Federal Government of Nigeria, has announced plans to raise N200 billion through a bond auction scheduled for Monday, 25 August 2025. Settlement is set for Wednesday, 27 August.
Details of the offer, published on the DMO website on Thursday, show that it will feature two instruments: N100 billion in FGN JUL 2030, a five-year tenor re-opening, and N100 billion in 17.95% FGN JUNE 2032, a seven-year tenor re-opening.
Each unit of the bonds is priced at N1,000, with a minimum subscription of N5,000. Additional purchases must be made in multiples of N1,000, and investors are permitted to subscribe up to N50 million.
The bonds, being re-openings of existing issues, will have their interest rates set by the yield-to-maturity bids that clear the total volume offered at the auction. Interest will be paid twice a year, while the principal will be redeemed in full through a bullet repayment on maturity.
The announcement follows the successful conclusion of the July 2025 auction, in which N185.9 billion was allotted across two re-opened bond series. Figures from the DMO reveal that the auction attracted N39.075 billion in subscriptions for the 5-Year FGN APR 2029 bond and N261.597 billion for the 7-Year FGN JUN 2032 bond.
From these bids, N13.430 billion was allotted for the APR 2029 maturity and N172.502 billion for the JUN 2032 maturity, resulting in a total allotment of N185.932 billion, well above the original offer size.
Although the coupon rates for the bonds remained unchanged at 19.30% and 17.95%, the allotments cleared at lower marginal rates of 15.69% for the 5-Year and 15.90% for the 7-Year bonds. This downward movement suggests that investors may be anticipating softer inflation or stability in monetary policy in the medium term.
The July auction drew 149 bids in total—40 for the 2029 tenor and 109 for the 2032 tenor. Of these, 74 bids were successful, with 15 clearing for the shorter bond and 59 for the longer one.
The DMO noted that the issuance process was undertaken in accordance with the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, CAP. L17, Laws of the Federation of Nigeria 2004.
Prospective investors were encouraged to approach any of the designated Primary Dealer Market Makers (PDMMs) for applications and further information. These include Access Bank Plc, First Bank of Nigeria Ltd, Stanbic IBTC Bank Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, Standard Chartered Bank Nigeria Ltd, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, United Bank for Africa Plc, Ecobank Nigeria Ltd, FBNQuest Merchant Bank Ltd, Rand Merchant Bank Nigeria Ltd, Guaranty Trust Bank Ltd, and Zenith Bank Plc.
