Nigeria’s Debt Management Office (DMO) will seek up to N500 billion on November 24 as it reopens two benchmark Federal Government bonds, widening its domestic borrowing drive for the final quarter of 2025.
The offer, announced in a revised Q4 issuance calendar on November 18, represents a significant expansion from the agency’s earlier plan and is aimed at strengthening liquidity in the sovereign bond market.
The auction will reopen the 17.945% FGN AUG 2030 and 17.95% FGN JUN 2032 bonds, with each tranche now sized at N200 billion to N250 billion. The maturities currently stand at 4 years and 9 months for the 2030 bond and 6 years and 7 months for the 2032 series.
Officials said the increase marks a shift from the initial guidance of N120 billion to N150 billion per tranche, reflecting higher funding needs and a strategy to consolidate activity within core tenors of the yield curve.
The expanded issuance coincides with the Central Bank of Nigeria’s plan to repay maturing Open Market Operation (OMO) bills, including a N32 billion 56-day instrument issued on November 7. The repayments are expected to inject liquidity into the financial system ahead of the auction.
According to the updated borrowing programme, the DMO aims to raise between N440 billion and N650 billion across three auction windows in Q4. The first auction on October 27 delivered N240 billion to N300 billion, while the final window on December 15 will mirror the November issuance with another N400 billion to N500 billion offering.
Analysts note that the focus on reopening existing bonds is deliberate. It is designed to deepen liquidity, improve price discovery, and avoid fragmenting the debt market with multiple thinly traded securities. The approach aligns with international best practices for building resilient domestic debt markets.
Investor demand remains strong, supported by high coupon rates near 18%. Pension funds, banks, and asset managers are expected to participate aggressively, seeking to lock in elevated yields during year-end portfolio realignments.
Meanwhile, the CBN is set to repay about N332.45 billion in maturing OMO bills between December 2 and December 30. The repayments, covering both 361-day and 56-day maturities, will add to system liquidity and reinforce demand for government securities.
Market observers expect the issuance environment to remain stable through the end of the year as the government leans more heavily on domestic borrowing to finance its 2025 obligations.
