FG Attracts N1.63trn In February Bond Auction, Allots N910.39bn

The Debt Management Office (DMO) said N1.63 trillion was raised in bids during its February 2025 bond auction, reflecting strong investor demand for federal government of Nigeria (FGN) securities.

However, only N910.39 billion was allotted, demonstrating a strategic approach to debt issuance.

According to the DMO, two re-opened FGN bonds were offered at 19.30 per cent FGN APR 2029 (5-Year Re-opening), N305.362 billion allotted at a yield of 19.2 per cent and 18.50 per cent FGN FEB 2031 (7-Year Re-opening) – N605.027 billion allotted at a yield of 19.33 per cent.

The FGN bonds were issued with a minimum unit price of N1,000, with subscriptions starting from N50,001,000 and multiples of N1,000 thereafter. Interest payments will be made semi-annually, while principal repayment will be made at maturity.
Re-openings of existing bonds allow the government to raise additional funds without issuing new securities, helping to deepen Nigeria’s bond market while maintaining liquidity.

The high subscription level underscores investor confidence in FGN bonds, which are backed by the full faith and credit of the Federal Government of Nigeria.

These bonds qualify as trustee investment Act-approved securities, tax-exempt instruments for pension funds, liquid assets for banks in meeting regulatory liquidity ratios, and listed securities on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.

Nigeria’s government continues to rely on the domestic debt market to finance budget deficits and infrastructure projects. With yields remaining attractive, FGN bonds are a preferred investment for local and institutional investors. However, the rising yields indicate heightened inflation concerns and tighter monetary conditions in the economy.

Investors interested in future auctions can approach any of the designated Primary Dealer Market Makers (PDMMs), including banks like Access Bank, First Bank, Zenith Bank, and Standard Chartered Bank.

Amid Nigeria’s navigation through economic challenges, the successful bond auction signals resilience in the domestic debt market and continued investor trust in government securities.