DMO unveils N460bn auction of existing govt bonds
The Debt Management Office has announced a new auction initiative, which includes the re-opening of two current Federal Government Bonds totaling N460 billion.
Scheduled for November 24, 2025, the auction seeks to enhance domestic borrowing, boost market liquidity, and provide fiscal support through long-term, low-risk securities.
According to the official offer circular released on Tuesday, the DMO will receive bids for:
N230,000,000,000.00 – 17.945 per cent FGN AUG 2030 (5-Year Re-opening)
N230,000,000,000.00 – 17.95 per cent FGN JUNE 2032 (7-Year Re-opening)
The DMO indicated that successful bidders are required to complete settlements by November 26, 2025.
The circular further details that each bond unit is priced at N1,000, with a minimum subscription amount of N50,001,000, and additional subscriptions must be in increments of N1,000.
Since these offerings are re-openings of existing bonds, the DMO emphasized that investors will not bid on new coupon rates.
Instead, pricing will be determined by market conditions, based on the yield-to-maturity that clears the auction, as well as any accrued interest related to the bonds.
Interest payments occur semi-annually, providing reliable cash flow—making these securities particularly attractive to pension funds, insurance firms, fund managers, and other institutional investors looking for consistent medium- to long-term yields.
Both bonds will be repaid in full at their respective maturity dates through bullet repayment, ensuring that investors receive the entire principal in a single transaction.
Like all FGN Bonds, these securities offer significant advantages and legal safeguards under Nigerian law.
The bonds are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, ensuring transparency, secondary market liquidity, and effective price discovery.
They also qualify as liquid assets for banks’ liquidity ratio assessments, enhancing their attractiveness to deposit money banks.
Importantly, the instruments are entirely backed by the Federal Government of Nigeria and secured by the nation’s general assets, offering the highest level of sovereign security available in the domestic market.
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