The Federal Government has opened a fresh bond auction valued at N460 billion, offering two re-openings of existing FGN Bonds to deepen domestic borrowing and strengthen the debt market. The Debt Management Office (DMO) said the auction will hold on November 24, 2025, with settlement set for November 26, 2025.
According to the official circular, the DMO will receive bids for N230 billion of the 17.945% FGN AUG 2030 (5-Year Re-opening) and N230 billion of the 17.95% FGN JUNE 2032 (7-Year Re-opening). The agency said the offer supports long-term financing and helps the government meet its budget needs through stable, low-risk instruments.
Units remain fixed at N1,000 per bond, while the minimum subscription stands at N50,001,000, with increments allowed in multiples of N1,000. Since these are reopened bonds, investors will not bid for new coupon rates but will “pay market-driven prices determined by the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest,” the DMO stated.
Interest on both bonds is payable semi-annually, providing steady cash flow for pension funds, insurance firms, fund managers, and institutional investors. The DMO added that both instruments will be redeemed through bullet repayment at maturity, ensuring investors receive their full principal at once.ts
The bonds qualify as trustee investments under the Trustee Investment Act, making them suitable for conservative investment portfolios. They are also classified as government securities under CITA and PITA, allowing tax exemptions for pension funds and other regulated institutions.
Both instruments are listed on the Nigerian Exchange (NGX) and FMDQ OTC Securities Exchange, offering transparency, price discovery, and access to secondary market liquidity. They also qualify as liquid assets for banks’ liquidity ratio requirements, boosting their appeal to lenders.
The DMO emphasized that each bond is backed by the full faith and credit of the Federal Government of Nigeria. The instruments are charged upon the nation’s general assets, giving them the highest level of security available in the domestic debt market.
The latest bond sale comes as the government faces evolving fiscal pressures and rising global financing costs. With external borrowing becoming more expensive and exchange-rate challenges persisting, policymakers continue to prioritize domestic bond issuance to cover deficits, refinance existing obligations, and support market stability.