The Federal Government of Nigeria (FGN) has announced the offering of ₦200 billion in FGN bonds for subscription by auction in August 2025.
According to a circular published on the Debt Management Office (DMO) website on Thursday, the auction will hold on Monday, August 25, 2025, with settlement fixed for Wednesday, August 27, 2025.
The offer comprises two re-opened bonds: ₦100 billion FGN JUL 2030 (five-year tenor), ₦100 billion 17.95% FGN JUNE 2032 (seven-year tenor)
Each bond is priced at ₦1,000 per unit, with a minimum subscription of ₦5,000 and additional investments in multiples of ₦1,000. Investors can subscribe for up to ₦50 million.
The interest rate will be determined by the yield-to-maturity bids that clear the total volume offered at auction. Interest payments will be made semi-annually, while principal repayment will be in full at maturity.
The DMO stated that the issuance complies with the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, CAP. L17, Laws of the Federation of Nigeria 2004.
The DMO also announced the successful completion of the July 2025 FGN bond auction, where a total of ₦185.9 billion was allotted across two reopened bond offerings.
- ₦13.430 billion was allotted for the 5-Year FGN APR 2029 bond (at a marginal rate of 15.69%).
- ₦172.502 billion was allotted for the 7-Year FGN JUNE 2032 bond (at a marginal rate of 15.90%).
In total, the auction attracted 149 bids — 40 for the 2029 maturity and 109 for the 2032 maturity — with 74 bids successful.
While the coupon rates of 19.30% and 17.95% were retained, the lower allotment rates reflect declining yield expectations, suggesting investors anticipate easing inflationary pressures or stable monetary policy in the medium term.
The strong demand, particularly for the 7-Year bond, underscores investors’ confidence in the government’s medium-term borrowing instruments.
