The Federal Government of Nigeria, through the Debt Management Office (DMO), has announced the issuance of ₦200 billion in FGN bonds for subscription at its August 2025 auction.
According to a circular released by the DMO on Thursday, the auction will be held on Monday, August 25, 2025, with settlement scheduled for Wednesday, August 27, 2025.
The offer comprises:
₦100 billion FGN JUL 2030 (five-year tenor, re-opening)
₦100 billion 17.95% FGN JUNE 2032 (seven-year tenor, re-opening)
Each bond is priced at ₦1,000 per unit, with a minimum subscription of ₦5,000 and additional investments in multiples of ₦1,000. Investors may subscribe for amounts up to ₦50 million.
The DMO noted that, as reopened issues, the coupon rates remain unchanged, while the interest rate will be determined by the auction’s yield-to-maturity (YTM) clearing bid. Interest will be paid semi-annually, with the principal repaid in full at maturity via bullet repayment.
The issuance is 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.
Strong Demand in July Auction
The announcement follows the successful completion of the July 2025 bond auction, where the DMO allotted a total of ₦185.93 billion across two reopened bonds.
Highlights include:
₦39.08 billion in total subscriptions for the 5-Year FGN APR 2029 bond
₦261.60 billion in subscriptions for the 7-Year FGN JUN 2032 bond
Out of these bids, the DMO allotted ₦13.43 billion for the APR 2029 bond and ₦172.50 billion for the JUN 2032 bond, surpassing the initial offer size.
Although the bonds retained their original coupon rates of 19.30% and 17.95%, they cleared at marginal rates of 15.69% and 15.90%, respectively.
Analysts suggest the lower yields reflect growing investor confidence, with expectations of moderating inflation and a stable monetary policy outlook.
The July auction attracted 149 bids in total 40 for the 2029 bond and 109 for the 2032 bond with 74 successful bids recorded.
