The Federal Government of Nigeria, through the Debt Management Office, has announced plans to raise ₦300 billion via a bond auction scheduled for March 24, 2025.
The issuance includes ₦200 billion in a five-year bond (19.30% FGN APR 2029) and ₦100 billion in a nine-year bond (19.89% FGN MAY 2033). The bonds will be offered at ₦1,000 per unit, with a minimum subscription of ₦50,001,000 and increments of ₦1,000 thereafter. Successful bidders will have their allocations settled on March 26, 2025.
The bonds are government-backed securities, ensuring full repayment at maturity. They are eligible trustee investment assets under the Trustee Investment Act and tax-exempt for pension funds and institutional investors under the Company Income Tax Act and Personal Income Tax Act. They are also classified as liquid assets, meeting bank liquidity ratio requirements, and can be traded on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange.
Investors can subscribe through Primary Dealer Market Makers, including Access Bank, First Bank of Nigeria, Zenith Bank, United Bank for Africa, Guaranty Trust Bank, Stanbic IBTC, Standard Chartered Bank, and others.
With yields set at 19.30% for the five-year bond and 19.89% for the nine-year bond, these high-yield government securities are expected to attract strong investor demand, especially from pension funds, asset managers, and insurance firms.
The bond issuance aligns with the Federal Government’s broader debt strategy to finance fiscal deficits and support economic development amid Nigeria’s tight monetary policy environment.
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