The Debt Management Office (DMO) announced that it raised N724.9 billion in the February 2023 Federal Government bond auction, a 100 % increase over the previous year. The auction, held on 13 February 2023, attracted 577 bids totaling N724.9 billion for an offering of N360 billion. The total amount allotted reached N771.56 billion, with successful bids priced at marginal rates of 13.99 %, 14.90 %, 15.90 % and 16.00 %.
The original coupon rates for each bond were maintained. Successful bids for the 13.98 % FGN FEB 2028 (10‑year bond), 12.50 % FGN APR 2032 (10‑year bond), 16.2499 % FGN APR 2037 (20‑year bond) and 14.80 % FGN APR 2049 (30‑year bond) were allotted at marginal rates of 13.99 %, 14.90 %, 15.90 % and 16.00 % respectively. Settlement occurred on 15 February 2023, and the bonds will mature on 23 February 2028, 27 April 2032, 18 April 2037 and 26 April 2049.
According to a statement on the DMO’s website, the auction was part of efforts to raise funds for the implementation of the Federal Government’s 2023 budget and to finance critical infrastructure projects nationwide. The DMO highlighted its active promotion of FGN bonds to diversify funding sources and reduce reliance on short‑term borrowing. The FGN bond market has expanded significantly in recent years, offering a wide range of maturities and attractive yields for investors.
Overall, the February 2023 FGN bond auction results underscore the continued strong demand for government bonds and the government’s commitment to meeting its financing needs through capital markets. However, Nigeria’s rising debt profile remains a concern; experts have warned that the country’s debt levels may be unsustainable. In January, the DMO cautioned that Nigeria’s public debt could rise to N77 trillion if the nation’s “ways and means” are securitised.
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