The Nigerian Debt Management Office (DMO) has successfully raised ₦136.16 billion from its latest Federal Government of Nigeria (FGN) bond auction, held in August 2025. This auction featured two bonds: the 17.945% FGN AUG 2030, a new 5-year bond, and the 17.95% FGN JUN 2032, a re-opening of a 7-year bond, each with an offered size of ₦100 billion.
The 5-year bond attracted significant interest with 70 bids worth ₦102.36 billion. From these, the DMO allotted ₦46.01 billion at a marginal rate of 17.945%, with bid rates ranging from 12.50% to 21.50%. The 7-year bond saw even stronger demand, with 111 bids totaling ₦165.81 billion, resulting in the DMO allotting ₦90.16 billion at a marginal rate of 18%, within a bid range of 15% to 22%.
These bond issuances were conducted 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. Each bond unit is priced at ₦1,000, with a minimum subscription of ₦50,001,000, and additional subscriptions are required to be in multiples of ₦1,000.
Notably, the coupon rates for these bonds are predetermined, but successful bidders pay a price based on the yield-to-maturity that clears the offered volume, along with any accrued interest. Interest payments on both bonds are semi-annual, providing bondholders with regular income throughout the bond’s tenor. The bonds will be repaid in full on their respective maturity dates via bullet repayment, meaning the principal will be returned in a single payment.
In comparison to the previous month, the August auction saw a lower allotment than July 2025, when the DMO successfully allotted ₦185.9 billion across two reopened bond offerings. The July auction featured the re-opening of the 19.30% FGN APR 2029 bond and the 17.95% FGN JUN 2032 bond, garnering significant subscriptions and resulting in substantial allotments.
The August auction results highlight the continuing demand for Nigerian government bonds, reflecting investor confidence in the country’s debt management strategies. As Nigeria navigates its economic landscape, the success of these bond auctions plays a crucial role in the government’s funding efforts, underscoring the importance of effective debt management in supporting national development objectives.
