In a strategic move to bolster its domestic borrowing efforts, the Debt Management Office (DMO), on behalf of the Federal Government of Nigeria (FGN), has announced the auction of two re-opened FGN bonds worth a combined N300 billion. This latest offer is part of the government’s plan to finance budget deficits and accelerate critical infrastructure projects across the country.
The highly anticipated auction is slated for March 24, 2025, with successful bidders expected to finalize their purchases by March 26, 2025. Investors will have the opportunity to subscribe to two bonds: a N200 billion 5-year bond offering a 19.30% interest rate, maturing in April 2029, and a N100 billion 9-year bond with a 19.89% yield, maturing in May 2033. Both are re-openings of existing issuances, meaning their interest rates are already set.
Each bond is priced at N1,000 per unit, with a minimum subscription of N50,001,000 and additional bids in multiples of N1,000. Investors will enjoy semi-annual interest payments, providing a reliable income stream throughout the bond tenure. Upon maturity, the government will repay the principal in full, offering what experts describe as “bullet repayment” — a feature attractive to both institutional and retail investors.
One of the key advantages of these bonds is their tax-exempt status. Qualifying as government securities under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), these instruments are especially appealing to pension funds and other institutional investors seeking tax-efficient investment options. Moreover, their listing on the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange ensures liquidity and transparency in trading.
Beyond competitive yields — 19.30% and 19.89% respectively — the bonds are backed by the full faith and credit of the Federal Government, making them one of the most secure investment vehicles in the Nigerian financial market. Their status as approved trustee investments further underscores their safety and appeal, particularly for risk-averse investors seeking stable returns in a volatile economy.
The DMO emphasized that all bids must be submitted through authorized primary dealers, who serve as intermediaries between investors and the government. The bond issuance is a key part of the federal government’s broader strategy to manage the nation’s debt sustainably while creating investment opportunities for Nigerians eager to participate in the country’s economic growth.
