By Majeed Salaam
Nigeria’s domestic debt market is set for another major round of activity as the Debt Management Office (DMO) has announced a fresh auction of reopened Federal Government of Nigeria (FGN) Bonds valued at N460 billion.
The offer, scheduled for November 24, 2025, signals the government’s continued push to deepen local borrowing, stabilise financing streams, and ease pressure from rising global credit costs.
According to the offer circular released recently, the DMO will receive bids for two tranches -both re-openings of existing instruments:
- N230 billion – 17.945% FGN AUG 2030 (5-Year Re-opening)
- N230 billion – 17.95% FGN JUNE 2032 (7-Year Re-opening)
Settlement for successful bidders is slated for November 26, 2025.
The circular noted that at the heart of these offerings is the government’s strategy to rely more heavily on the domestic market for budgetary support. With external borrowing becoming increasingly expensive due to global interest rate hikes and currency pressures, longer-tenored naira-denominated bonds have become a preferred financing route.
The DMO has kept the pricing flexible. It stated that the units remain at N1,000 per bond, with a hefty minimum subscription of N50,001,000, aimed primarily at institutional investors. Because these are re-openings, investors are not bidding for new coupon rates. Instead, final pricing will be set by yield-to-maturity bids that clear the auction plus accrued interest.
The DMO stated that interest on the bonds will continue to be paid semi-annually, a feature that appeals strongly to pension funds, insurers, asset managers, and banks searching for predictable cash flows and moderate risk.
According to the office, both instruments will be redeemed via bullet repayment at maturity, meaning investors receive the entire principal in one lump sum when the bonds expire.
Beyond return prospects, FGN Bonds carry several statutory advantages. They qualify as trustee investments under the Trustee Investment Act, attract tax exemptions for pension and regulated funds under Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), and count as liquid assets for banks. Their listing on both the Nigerian Exchange (NGX) and FMDQ OTC Securities Exchange ensures transparency and ample secondary market access.
Most importantly, the bonds are backed by the full faith and credit of the Federal Government of Nigeria, offering the highest level of sovereign security available locally.
The latest auction lands at a time of tightening fiscal space and shifting global conditions. As the government works to manage refinancing obligations, plug budget gaps, and support market stability, large domestic issuances such as this have become a central feature of its debt strategy – anchoring liquidity while keeping the country’s borrowing programme on track.
