The Debt Management Office (DMO) has released the results of the January 2025 Federal Government of Nigeria (FGN) bond auction.
The auction successfully raised a total of N669.94 billion, with N606.46 billion allotted across three bond tenors.
This marks another significant milestone in the government’s bid to finance critical infrastructure projects and support budgetary needs through domestic borrowing.
DMO posted on X (formerly Twitter) on Tuesday “FGN BOND AUCTION RESULTS (JANUARY 2025) Total amount raised-N669.94bn Total amount allotted- N606.46bn Details: 19.30% FGN APR 2029 – allotted N78.86bn at 21.79% 18.50% FGN FEB 2031 – allotted N159. 29bn at 22.5% 22.60% FGN JAN 2035 – allotted N368.31bn at 22.6%.”
Breakdown of Allotments
The auction saw strong investor participation across the three tenors offered, with competitive yields reflecting prevailing market conditions. Below is a detailed breakdown of the bonds allotted:
- 19.30% FGN APR 2029:
- Amount Allotted: N78.86 billion
- Yield: 21.79%
- 18.50% FGN FEB 2031:
- Amount Allotted: N159.29 billion
- Yield: 22.50%
- 22.60% FGN JAN 2035:
- Amount Allotted: N368.31 billion
- Yield: 22.60%
Key Highlights
- Increased Investor Appetite:
The robust subscription levels highlight continued investor confidence in the government’s debt instruments, driven by attractive yields and Nigeria’s stable credit ratings. - Competitive Yields:
The yields for the bonds reflect current market dynamics, providing investors with a competitive return on investment while enabling the government to secure funding for priority projects. - Long-term Financing Focus:
The allotment of N368.31 billion to the 2035 bond underscores the government’s commitment to securing long-term funding for infrastructure and development initiatives.
Implications for the Economy
The proceeds from this bond auction will bolster the government’s efforts to finance critical projects across sectors, including infrastructure, health, and education.
It will also help address fiscal deficits while providing stable investment opportunities for institutional and retail investors.
The FGN bonds remain a preferred choice for investors due to their tax-free status, guaranteed returns, and alignment with Nigeria’s broader economic development strategy.
What’s Next for Investors?
The DMO is expected to conduct subsequent auctions throughout the year to meet the federal government’s borrowing needs as outlined in the 2025 budget. Interested investors are expected to monitor upcoming offers and leverage the yields available on FGN bonds.
What you should know
Nairametrics earlier reported DMO’s plans to generate N450 billion through its January 2025 bond auction.
The figure is higher than the N360 billion offered in January 2024 and the N120 billion offered last month in December of last year.
