The Federal Government is planning to raise between N900 billion and N1.2 trillion from the domestic bond market in the second quarter of 2025, lower than its N1.8 trillion target in the first quarter of the year.
According to the just published FGN Bond Issuance Calendar for Q2 2025 by the Debt Management Office (DMO), three auctions will be held on April 28, May 26, and June 23, with two bonds to be offered monthly.
The DMO plans to raise between N300 billion and N400 billion at each auction from both reopened bonds and new issuances compared to the Q1 2025 calendar which featured three bonds per auction, targeting between N450 billion and N600 billion monthly for the quarter.
The Bonds offered included the 19.30 per cent FGN APR 2029, the 18.50 per cent FGN FEB 2031, and a debut 10-year FGN JAN 2035 bond. Each was offered within a range of N150bn to N200bn
For the second quarter, the Federal Government has narrowed its auctions to two bonds per month as in April and May, the DMO will reopen the 19.30 per cent FGN APR 2029 and 19.89 per cent FGN MAY 2033 bonds.
In June, it will introduce two new issues—the FGN JAN 2030 and FGN JAN 2032—with original tenors of five and seven years, respectively.
Analysts believe that the reduced yield targets from the bond auctions in the second quarter is not unconnected with inclement fiscal environment characterised by declining oil earnings, surging inflation, and a record N13.08 trillion budget deficit in the fiscal year, amongst other factors.
