Nigeria Offers ₦200 Billion in Bonds for August 2025 Auction
In a bid to raise funds for various development projects, the Federal Government of Nigeria has announced the offering of ₦200 billion in bonds subscription by auction in August 2025. The exercise is set to take place on August 25, 2025, with settlement fixed for Wednesday, August 27, 2025.
According to a circular posted on the Debt Management Office’s (DMO) website, the bond issuance is in compliance 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. The offer comprises two bonds – ₦100 billion FGN JUL 2030, a five-year tenor re-opening, and ₦100 billion 17.95% FGN JUNE 2032, a seven-year tenor re-opening.
Each bond unit is priced at ₦1,000, with a minimum subscription of ₦5,000 and additional investments in multiples of ₦1,000, allowing investors to subscribe for up to ₦50 million. The interest rate for the bonds will be determined based on the yield-to-maturity bid that clears the total volume offered at auction, as these are re-openings of previously issued bonds. Interest payments will be made semi-annually, while the principal will be repaid in full through a bullet repayment at the bond’s maturity date.
The DMO also announced the successful completion of the July 2025 FGN bond auction, with a total of ₦185.9 billion successfully allotted across two reopened bond offerings. The auction attracted a total of 149 bids – 40 for the 2029 maturity and 109 for the 2032 maturity. Of these, 74 bids were successful (15 and 59, respectively).
The bonds retained their original coupon rates of 19.30% and 17.95%, respectively, but were allotted at marginal rates of 15.69% for the 5-Year bond and 15.90% for the 7-Year bond. This reflects a decline in yield expectations, possibly indicating that investors anticipate easing inflationary pressures or a stable monetary policy environment in the medium term.
The ₦200 billion bond offering is part of the government’s efforts to raise funds for developmental projects and bridge the country’s infrastructure gap. The successful completion of the July 2025 FGN bond auction and the offering of new bonds demonstrate the government’s commitment to funding its projects and stimulating economic growth.
As Nigeria continues to navigate its economic recovery, the bond market remains a critical source of funding for the government. The DMO’s efforts to promote transparency and efficiency in the bond market are expected to attract more investors and support the country’s economic growth.
