The Debt Management Office (DMO) has reported that its November 2025 auction of the Federal Government Bonds N460 billion offer was oversubscribed by 120%, with total bids for the debt instruments peaking at about N657 billion.
The auction, held on 24 November 2025 with settlement scheduled for 26 November 2025, featured two re-opened instruments, namely the 5-year bond: the 17.945% FGN Aug 2030 re-opening (maturing 27 August 2030) with an offer size of N230 billion; and the 7-year bond: the 17.95% FGN Jun 2032 re-opening (maturing 25 June 2032) also offered at N230 billion.
According to the DMO, the 5-year Aug 2030 issue total bids amounted to N147.869 billion, with allotment of N134.799 billion and the marginal rate at which successful bids were allotted was 15.9%.
Similarly, the Office reported that the 7-year Jun 2032 issue total bids surged to N509.392 billion, with allotment of N448.722 billion (plus a non-competitive allotment of N6 billion) and the marginal rate was 16%.
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It clarified that although the coupon rates of 17.945% (5-year) and 17.95% (7-year) remained unchanged, the pricing to investors through allocation was determined on the basis of the auction yields (marginal rates).
On the debt instruments security, the DMO has consistently assured investors that FGN bonds remained the safest form of investment in the domestic debt market.
Specifically, the Office declared that the bonds enjoyed Sovereign Guarantee as the principal and agreed interest payments for FGN bonds are guaranteed by the Federal Government, which implies that the government has an obligation to pay the bondholder as and when due as well as Zero Default Risk as the bonds are classified as a risk-free debt instrument, meaning there is virtually no default risk.
In addition, the bonds are not only backed by the government’s “full faith and credit” but are also “charged upon the general assets of Nigeria”.
As per the bonds legal protections, the DMO maintained that they qualify as securities in which trustees can invest under the Trustee Investment Act; they are classified as government securities for tax exemption purposes for pension funds and other investors under the relevant Company Income Tax Act (CITA) and Personal Income Tax Act (PITA); and that they also count as liquid assets for banks when calculating their liquidity ratios.
