Nigeria’s Debt Management Office (DMO) will on Monday, November 24, 2025, seek to raise between N400 billion and N500 billion through the reopening of two benchmark Federal Government of Nigeria (FGN) bonds, representing a significant expansion from the initial issuance plan outlined earlier in the quarter.
According to the revised Q4 2025 issuance calendar released on November 18, the auction, tagged as Auction, will reopen the 17.945% FGN AUG 2030 and 17.95% FGN JUN 2032 bonds, with each tranche sized at N200 billion to N250 billion.
This marks a substantial increase from the earlier plan of N120 billion to N150 billion per tranche.
The bonds, now carrying remaining maturities of 4 years, 9 months (2030) and 6 years, 7 months (2032), remain core components of the intermediate segment of the sovereign yield curve.
This expanded issuance comes as the Central Bank of Nigeria (CBN) prepares to repay maturing Open Market Operation (OMO) bills, including a N32 billion 56-day bill issued on November 7. These repayments are expected to inject liquidity into the financial system, creating supportive conditions for the upcoming bond sale.
Revised Q4 borrowing calendar highlights stronger domestic debt strategy
The updated Q4 programme revealed the government’s intention to raise between N440 billion and N650 billion across three auction windows, reinforcing its shift toward domestic borrowing to fund 2025 budget obligations.
The first auction, held on October 27, raised between N240 billion and N300 billion, while the final auction—scheduled for December 15, 2025—will mirror the November issuance by offering another N400 billion to N500 billion in the same bond series.
By mid-December, the reopened 2030 and 2032 bonds will have slightly shorter maturities of 4 years, 8 months, and 6 years, respectively. However, the DMO cautioned that the calendar remains provisional and may be adjusted based on evolving market conditions or fiscal requirements.
Analysts say the renewed focus on reopening existing bonds is deliberate, designed to deepen liquidity, improve price discovery, and avoid fragmenting the debt market with multiple thinly traded tenors. The strategy aligns with global best practices for developing robust domestic bond markets.
High yields sustain investor demand as CBN prepares major OMO repayments
With interest rates hovering at multi-year highs, investors’ appetite for sovereign paper remains strong. Banks, pension fund administrators (PFAs), asset managers and other institutional players continue to favour government securities offering coupon rates near 18%, making the November 24 auction particularly attractive. Many investors are expected to take advantage of the opportunity to lock in high real returns ahead of year-end portfolio adjustments.
At the same time, the CBN is set to repay a total of N332.450 billion in maturing OMO bills between December 2 and December 30, 2025. This includes N450 million due on December 2 under the OMO 2-Dec-2025 (361-day) programme, and approximately N300 billion maturing on December 30 under the OMO 30-Dec-2025 (56-day) instrument issued on November 4.
These substantial repayments will inject liquidity into the banking system, further strengthening demand conditions ahead of the DMO’s final bond sales for the year. Analysts expect a stable issuance environment to persist through year-end, supported by strong market dynamics and the government’s continued reliance on domestic borrowing.
