The Debt Management Office (DMO has announced the opening of subscriptions for a new round of Federal Government bond auctions totalling N460 billion.
The offer consists of two re-openings of previously issued instruments: N230 billion of the 17.945% FGN August 2030 (5-Year Re-opening) and N230 billion of the 17.95% FGN June 2032 (7-Year Re-opening).
According to the official circular issued on Monday, the auction is scheduled for December 15, 2025, while successful bidders will settle their allotments on December 17, 2025.
The DMO’s announcement continues the government’s strategy of leveraging the domestic debt market to fund budgetary needs, deepen the fixed-income market, and attract long-term domestic savings.
Similar offer to November 2025 auction
In the November auction, Nairametrics reports that the DMO made a fresh offer for subscription by auction, featuring two re-openings of existing Federal Government of Nigeria (FGN) bonds with a combined value of N460 billion.
According to the official offer circular issued on Tuesday, the DMO will receive bids for the following instruments:
- 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)
The DMO also reported a strong display of investor appetite at its November 2025 government bond auction, with total bids reaching approximately N657 billion—more than 120% of the combined offer size of N460 billion.
For the 5-year FGN August 2030 issue, total bids stood at N147.869 billion, with N134.799 billion allotted. The marginal rate for successful bids was 15.9%.
For the 7-year FGN June 2032 issue, investor demand was even stronger, with total bids climbing to N509.392 billion. A total of N448.722 billion was allotted, in addition to a non-competitive allotment of N6 billion. The marginal rate cleared at 16%.
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.
