The Federal Government of Nigeria plans to raise between N900 billion and N1.2 trillion through the domestic bond market in the second quarter (Q2) of 2025, marking a significant reduction from the N1.8 trillion target set for the first quarter (Q1) of the year.
This is according to the FGN Bond Issuance Calendar for Q2 2025 published by the Debt Management Office (DMO).
The revised issuance volume comes as the government continues to navigate a delicate fiscal environment marked by elevated inflation, weak oil receipts, and a record N13.08 trillion budget deficit, representing 3.87% of Gross Domestic Product (GDP).
According to the DMO’s calendar, three bond auctions will be held on April 28, May 26, and June 23, 2025, with two bonds offered per month. The calendar outlines a monthly offer range of N300 billion to N400 billion, comprising a mix of re-opened bonds and new issuances.
In total, the DMO expects to raise between N900 billion and N1.2 trillion in Q2, a step down from the Q1 calendar, which targeted the maximum raise of N1.8 trillion across three auctions in January, February, and March 2025.
Lower issuance for Q2 2025
During Q1 2025, the DMO offered three bonds per month, including two re-openings—the 19.30% FGN APR 2029 and the 18.50% FGN FEB 2031—as well as a new 10-year issuance, the FGN JAN 2035. Each bond was offered in the range of N150 billion to N200 billion, translating to N450 billion to N600 billion monthly, and a potential N1.8 trillion for the quarter if fully subscribed.
In contrast, the Q2 2025 calendar features two bonds per month, each with the same N150–N200 billion range. While the APR 2029 and MAY 2033 bonds will be re-opened in April and May, the DMO will introduce two new instruments in June—the FGN JAN 2030 (5-year tenor) and FGN JAN 2032 (7-year tenor). This signals a more conservative funding approach amid changing market dynamics.
Breakdown of Q2 bond offerings
In April, the DMO will re-open the 19.30% FGN APR 2029, which will have a remaining tenor of four years, and the 19.89% FGN MAY 2033, with six years and one month to maturity. The same instruments will be re-opened again in May, with slightly shorter terms to maturity—three years and 11 months for the APR 2029, and six years for the MAY 2033.
- In June, the DMO plans to issue two new bonds: the FGN JAN 2030 and FGN JAN 2032, with original tenors of five and seven years, respectively. While the coupon rates for these new bonds have not yet been announced, they are expected to align with current market yields in the 19% to 20% range, given prevailing macroeconomic conditions.
What you should know
- The lower target in Q2 suggests a shift in debt strategy, potentially influenced by a more cautious monetary environment and sustained investor demand during Q1. With headline inflation at 24.23% in March 2025 and the Central Bank of Nigeria’s benchmark interest rate at 27.5%, high-yield bonds remain attractive to institutional investors.
- By reducing the issuance size while maintaining the frequency of auctions, the DMO appears to be adopting a strategy that balances liquidity absorption with market stability.
- The bonds qualify as trustee-eligible instruments, are tax-exempt for pension and institutional funds under CITA and PITA, and are recognised as liquid assets for calculating banks’ liquidity ratios. They will also be listed on the Nigerian Exchange (NGX) and FMDQ OTC Securities Exchange, facilitating active secondary market trading.
