The Federal Government has announced a fresh N260 billion bond offer under its domestic borrowing programme for October 2025, as part of efforts to finance budgetary needs and sustain investor confidence in the fixed-income market.
The offer comprises two re-openings — N130 billion of the 17.945% FGN AUG 2030 (5-year tenor) and N130 billion of the 17.95% FGN JUNE 2032 (7-year tenor) — with settlement scheduled for Wednesday, October 29.
According to the Debt Management Office (DMO), investors will bid based on yield-to-maturity rates, with accrued interest added to settlement pricing. Coupon rates near 18 percent aim to keep appetite strong for medium-term government securities while managing refinancing risks.
Interest on the bonds will be paid semi-annually, a key attraction for pension funds, asset managers, and banks seeking steady income flows.
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Both instruments are backed by the full faith and credit of the Federal Government, qualifying as tax-exempt for pension funds under CITA and PITA and as eligible liquid assets for banks' liquidity ratio compliance. They are already listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange, ensuring transparency and tradability.
Access to the auction targets large institutional and high-net-worth investors, with a minimum subscription of N50 million and multiples of N1,000 thereafter. Primary Dealer Market Makers (PDMMs), including top commercial and merchant banks, have been authorized to receive bids nationwide.
The auction comes just after the Central Bank of Nigeria (CBN) rolled over N650 billion in maturing Treasury Bills across three tenors—91-day, 182-day, and 364-day—at higher interest rates of 15.30%, 15.50%, and 16.14%, respectively.
Analysts say the combined strategy reflects the government's focus on meeting fiscal obligations through the domestic market while maintaining investor confidence amid tightening global credit conditions.
