The Debt Management Office (DMO) has successfully raised ₦136.16 billion from the Federal Government of Nigeria (FGN) bond auction held in August 2025.
In a circular published on Tuesday, the DMO confirmed that the auction featured two instruments: the 17.945% FGN AUG 2030 (new 5-year bond) and the 17.95% FGN JUN 2032 (re-opening, 7-year bond). Each bond had an offered size of ₦100 billion.
Breakdown of the Auction Results
The 5-year FGN AUG 2030 bond received 70 bids worth ₦102.36 billion. From this, the DMO allotted ₦46.01 billion at a marginal rate of 17.945%. Bid rates for this instrument ranged from 12.50% to 21.50%.
The 7-year FGN JUN 2032 bond attracted even stronger interest, with 111 bids worth ₦165.81 billion. Out of this, the DMO allotted ₦90.16 billion at a marginal rate of 18%, within a bid range of 15% to 22%.
According to the DMO, the bond issuance was conducted in line 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.
Bond Features and Investor Terms
- Each unit of the bond is priced at ₦1,000.
- The minimum subscription is ₦50,001,000, with additional subscriptions in multiples of ₦1,000.
- Interest payments will be made twice a year (semi-annual).
- At maturity, the principal will be repaid through a bullet repayment (a one-time full payment).
Although coupon rates are fixed, successful investors pay based on the yield-to-maturity that clears the offered volume, plus any accrued interest from the last payment date up to settlement.
