The Debt Management Office (DMO) will today settle N100 billion worth of Federal Government of Nigeria (FGN) bonds, ramping up the highly successful auction that attracted investor participation and was significantly oversubscribed.
Conducted on Monday by the Office, the auction being part of the Federal Government’s 2025 borrowing plan to finance the national budget and manage the country’s public debt sustainably through domestic borrowing, featured two separate bonds, each with a face value of N50 billion.
According to the DMO, the lead performer in the auction was a newly issued 7-year bond with a coupon rate of 17.95 per cent and a maturity date of June 25, 2032.
Data from the debt instruments market indicated that the bond generated strong market interest with 209 bids amounting to N561.17 billion in subscriptions, representing eleven times its offer size. At the end of its assessment, 41 bids were successfu, with N98.95 billion allotted to investors.
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Similarly, the second offering was a re-opening of the 19.30 per cent FGN APR 2029 bond (5-year tenor) and at a marginal rate of 17.75 per cent, slightly below its coupon rate. In line with investment rules, the original 19.30 per cent coupon will remain in effect for interest payments.
The data from the DMO reflected that the two bonds were priced at N1,000 per unit, with a minimum subscription requirement of N50,001,000 and additional purchases in multiples of N1,000.
The interest on the instruments is payable semi-annually while the principal repayment will be made in full at maturity through a bullet repayment structure.
In the bond auction results statement from the DMO, it stated that the issuance complied with statutory provisions, including 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.
Available data indicated that as of the end of Q1 2025, Nigeria’s total public debt stood at N101.9 trillion, with the domestic component representing about 60 per cent.
Despite concerns being raised by experts about the likely non-sustainability of Nigeria’s surging debt stock, the DMO has consistently maintained that the country’s debt profile remained within sustainable thresholds.
