The Debt Management Office (DMO) has announced a ₦460 billion offer for subscription by auction, comprising two re-openings of existing Federal Government Bonds. The move aims to strengthen domestic borrowing, enhance market liquidity, and support budgetary financing through long-term, low-risk instruments.
The DMO will receive bids for two bond re-openings: ₦230 billion for the 17.945% FGN AUG 2030 (5-Year Re-opening) and ₦230 billion for the 17.95% FGN JUNE 2032 (7-Year Re-opening). Successful bidders will complete settlement on November 26, 2025. The auction, scheduled for November 24, 2025, reflects the government’s ongoing efforts to utilize long-term, low-risk instruments for budgetary financing.
The units of sale are pegged at ₦1,000 per unit, with a minimum subscription of ₦50,001,000 and subsequent increments in multiples of ₦1,000. As these instruments are re-openings of previously issued bonds, investors will not be bidding for new coupon rates. Instead, they will pay market-driven prices determined by the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest on the instruments.
The bonds offer predictable cash flow, with interest payable semi-annually, making them an attractive option for pension funds, insurance firms, fund managers, and institutional investors seeking stable, medium-to-long-term returns. Both instruments will be redeemed through bullet repayment at their respective maturity dates, ensuring investors are repaid the entire principal value at once. The FGN Bonds carry significant benefits and protections under Nigerian law, providing a secure investment opportunity.
This auction is part of the government’s strategy to diversify its financing options and reduce reliance on short-term borrowing. By issuing long-term bonds, the government aims to lock in lower interest rates and reduce the risk of debt refinancing. The move is also expected to attract foreign investors, who are seeking stable and secure investment opportunities in emerging markets.
The DMO’s efforts to develop the domestic bond market have been ongoing, with a focus on creating a more efficient and transparent market. The auction is expected to be well-received by investors, given the attractive yields and secure nature of the instruments. As the Nigerian economy continues to grow and develop, the demand for long-term, low-risk instruments is likely to increase, making this auction a significant step in the right direction.