FG offers N200bn bonds to investors in August auction

The Federal Government, through the Debt Management Office (DMO), will raise N200 billion from the domestic market via a bond auction scheduled for August 25, 2025, as it seeks to finance its budget deficit and deepen the local debt market.

In a notice on Friday, the DMO said the auction would comprise two instruments—an entirely new five-year FGN bond due August 2030 and a re-opening of a seven-year bond maturing in June 2032—each with an offer size of N100 billion. The seven-year bond carries a coupon rate of 17.95 percent per annum, payable semi-annually.

The bonds are offered at N1,000 per unit, with a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter. The settlement date is August 27, 2025.

The debt office explained that pricing for successful bids will be based on the yield-to-maturity that clears the auction, in line with market dynamics, and will include any accrued interest on the instruments.

“These FGN Bonds qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) and are tax-exempt for pension funds, among others,” the DMO said.

The bonds will be listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, and will count as liquid assets for banks in computing liquidity ratios.

The DMO reiterated that all FGN bonds enjoy the full faith and credit of the Federal Government and are charged upon the general assets of Nigeria.

Market analysts say the high yield on government securities continues to attract strong interest from domestic institutional investors, despite concerns over inflation and fiscal pressures.