The Debt Management Office (DMO) successfully raised ₦136.16 billion from the Federal Government of Nigeria (FGN) bond auction conducted in August 2025.
Details released on Tuesday via a circular on the DMO’s official website revealed that the auction included the 17.945% FGN AUG 2030 (a new five-year bond) and the 17.95% FGN JUN 2032 (a re-opening seven-year bond), each with an offered size of ₦100 billion.
The five-year bond attracted 70 bids totaling ₦102.36 billion, from which the DMO allocated ₦46.01 billion at a marginal rate of 17.945%. Bid yields for this bond ranged between 12.50% and 21.50%.
Meanwhile, the seven-year bond drew more robust demand with 111 bids valued at ₦165.81 billion, resulting in an allotment of ₦90.16 billion at a marginal rate of 18%, within a bid range of 15% to 22%.
The DMO confirmed that the bond issuance complied with the Debt Management Office (Establishment) Act of 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 accepted in increments of ₦1,000.
While coupon rates are fixed, successful bidders pay a price based on the yield-to-maturity that clears the offered volume, including accrued interest from the last payment date to settlement.
Interest payments on both bonds are made semi-annually, ensuring regular income for investors throughout the bonds’ tenure.
The principal amount will be repaid in full on maturity dates via a bullet repayment.
In a related update, the DMO disclosed that in July 2025, it had allotted ₦185.9 billion through two reopened bond offerings, surpassing the August allotment.
That auction included the re-opening of the 19.30% FGN APR 2029 bond (five-year tenor) with ₦20 billion offered, and the 17.95% FGN JUN 2032 bond (seven-year maturity) with ₦60 billion available.
Subscriptions reached ₦39.075 billion for the 2029 bond and a remarkable ₦261.597 billion for the 2032 bond.
From these bids, the DMO allocated ₦13.43 billion to the APR 2029 bond and ₦172.5 billion to the JUN 2032 bond, totaling ₦185.93 billion, well above the initial offers.
Though coupon rates remained at 19.30% and 17.95% respectively, allotment occurred at marginal rates of 15.69% for the five-year and 15.90% for the seven-year bond.
The re-openings drew 149 bids in total—40 for the 2029 maturity and 109 for 2032—with 74 bids successfully allotted (15 and 59 respectively).
