The Federal Government of Nigeria, through the Debt Management Office (DMO), has released details of its June 2025 bond offer, seeking to raise a total of N100 billion from the domestic debt market.
According to a statement released by the DMO on Tuesday, the auction is scheduled to take place on June 23, 2025, with a settlement date of June 25, 2025.
The bond issuance includes a N50 billion 5-year re-opening bond and a N50 billion 7-year new bond offering and is part of the government’s ongoing efforts to finance the 2025 budget and manage public debt through domestic borrowing.
The issuance is being made in line with the provisions of 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, according to the DMO.
Details of the bonds offered
The bond offer consists of two re-openings of previously issued instruments. The first is an offer of N50,000,000,000.00 at 19.30% FGN APR 2029 with a 5-year maturity period. The second is an offer of N50,000,000,000.00 – FGN JUNE 2032 with a 7-year maturity period.
Each unit of the bonds is priced at N1,000, with a minimum subscription amount of N50,001,000. Additional subscriptions must be made in multiples of N1,000. Although the coupon rates are predetermined, successful bidders at the auction will pay a price based on the yield-to-maturity that clears the offered volume, along with any accrued interest from the last interest payment date up to the settlement date.
Interest on both bonds is payable semi-annually, providing bondholders with regular income during the tenor of the instruments. The bonds will be repaid in full on their respective maturity dates through bullet repayment, meaning the principal will be paid back in a single lump sum.
Differences from May offering
In contrast, the May 2025 auction featured a N100 billion offer for the same 5-year bond and N200 billion for the 9-year bond, amounting to a total of 300 billion.
The offer for the FGN APR 2029 bond has been reduced from N100 billion in May to N50 billion in June. Also, the FGN JUNE 2032 bond offer is now slated for N50 billion.
Both bonds are re-openings of previously issued instruments, meaning the coupon rates are fixed at 19.30% and 19.89% respectively, with auction participants bidding based on their preferred yield-to-maturity in May.
What you should know
These bonds retain their status as eligible securities under several Nigerian financial and tax regulations. They qualify as approved instruments for investment by trustees under the Trustee Investment Act and are recognised as government securities under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), providing tax exemptions for certain classes of institutional investors such as pension funds.
In addition, the bonds qualify as liquid assets for banks, making them suitable for use in meeting liquidity ratio requirements. They are also listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, which ensures that investors can trade them on the secondary market if they choose to exit their positions before maturity.
DMO listed Access Bank Plc, First Bank of Nigeria Ltd, Stanbic IBTC Bank Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, Standard Chartered Bank Nigeria Ltd, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, United Bank for Africa Plc, Ecobank Nigeria Ltd, FBNQuest Merchant Bank Ltd, Rand Merchant Bank Nigeria Ltd, Guaranty Trust Bank Ltd, and Zenith Bank Plc as Primary Dealer Market Makers (PDMMs).
