The Debt Management Office (DMO) has announced a ₦460 billion offer for subscription by auction, consisting of two re‑openings of existing Federal Government Bonds. The aim is 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 must settle on 26 November 2025, and the auction is scheduled for 24 November 2025. Units are priced at ₦1,000 each, with a minimum subscription of ₦50,001,000 and subsequent increments in multiples of ₦1,000.
Since these are re‑openings of previously issued bonds, investors will not bid for new coupon rates. Instead, they will pay market‑driven prices determined by the yield‑to‑maturity bid that clears the auction volume, plus any accrued interest. The bonds provide predictable cash flow, with interest payable semi‑annually, making them attractive to pension funds, insurance firms, fund managers, and other institutional investors seeking stable medium‑to‑long‑term returns. Both instruments will be redeemed by bullet repayment at maturity, returning the full principal at once.
FGN bonds enjoy significant benefits and protections under Nigerian law, offering a secure investment opportunity. This auction forms part of the government’s strategy to diversify financing options and reduce reliance on short‑term borrowing. By issuing long‑term bonds, the government aims to lock in lower interest rates and mitigate refinancing risk, while also attracting foreign investors looking for stable, secure opportunities in emerging markets.
The DMO’s ongoing efforts to develop a more efficient and transparent domestic bond market are reflected in this auction, which is expected to be well‑received given the attractive yields and security of the instruments. As Nigeria’s economy continues to grow, demand for long‑term, low‑risk instruments is likely to rise, making this auction a significant step forward.
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