The Debt Management Office (DMO) has announced a fresh offer for subscription by auction, presenting two re-openings of existing Federal Government Bonds valued at a combined N460 billion.
The auction, scheduled for November 24, 2025, reflects ongoing government efforts to strengthen domestic borrowing, enhance market liquidity, and support budgetary financing through long-term, low-risk instruments.
According to the official offer circular issued on Tuesday, the DMO will receive bids for:
- N230,000,000,000.00 – 17.945% FGN AUG 2030 (5-Year Re-opening)
- N230,000,000,000.00 – 17.95% FGN JUNE 2032 (7-Year Re-opening)
Successful bidders will complete settlement on November 26, 2025, DMO stated.
Flexible Pricing and Semi-Annual Returns
According to the DMO circular, the units of sale are pegged at N1,000 per unit, with a minimum subscription of N50,001,000 and subsequent increments in multiples of N1,000.
Since both instruments are re-openings of previously issued bonds, DMO said investors will not be bidding for new coupon rates.
Instead, the DMO stated, they will pay market-driven prices determined by the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest on the instruments.
Interest on the bonds remains payable semi-annually, offering predictable cash flow—an attractive feature for pension funds, insurance firms, fund managers, and institutional investors seeking stable, medium-to-long-term returns.
Both instruments will be redeemed through bullet repayment at their respective maturity dates, ensuring investors are repaid the entire principal value at once.
What you should know
As with all FGN Bonds, the instruments on auction carry significant benefits and protections under Nigerian law.
They:
- Qualify as trustee investments under the Trustee Investment Act, making them secure options for investment portfolio managers.
- Qualify as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), providing tax exemption benefits for Pension Funds and other regulated entities.
They are listed on the Nigerian Exchange Limited (NGX) and FMDQ OTC Securities Exchange, ensuring transparency, secondary market liquidity, and price discovery.
- Qualify as liquid assets for banks’ liquidity ratio calculations, enhancing their attractiveness for deposit money banks.
Importantly, the bonds are backed by the full faith and credit of the Federal Government of Nigeria, and are charged upon the general assets of the nation—providing the highest level of sovereign security available in the domestic market.
The latest auction comes at a time of evolving fiscal needs and shifting global financial conditions. With external borrowing costs rising and exchange rate pressures persisting, the Federal Government continues to prioritize domestic debt issuance to meet budgetary shortfalls, manage refinancing obligations, and stimulate local financial markets.
