The Federal Government plans to raise N1.8 trillion from the bond market in the first quarter of 2025.
The Debt Management Office (DMO) made this known in the newly released FGN Bond Issuance Calendar, which includes a mix of re-opened and new bonds spread across three monthly auctions slated for January, February, and March 2025.
According to the DMO, this funding effort forms part of the government’s strategy to address a projected budget deficit of N13.08 trillion in 2025, equivalent to 3.87 per cent of the country’s Gross Domestic Product (GDP).
The bonds will serve as a key tool for financing critical infrastructure and tackling fiscal gaps.
The bond calendar also highlights the re-opening of the 19.30 per cent FGN APR 2029 bond, which has a remaining tenor of four years and three months.
The government plans to offer between N150 billion and N200 billion in each of the three auctions, making this bond an integral part of the overall programme.
Similarly, the 18.50 per cent FGN FEB 2031 bond, with a tenor of six years and one month as of January 2025, will also be re-opened and offered within the same range of N150 billion to N200 billion per auction.
In addition, a new bond, the FGN JAN 2035, will be introduced to the market, targeting investors looking for longer-term instruments.
With an original tenor of 10 years, it will be offered within the same N150 billion to N200 billion range.
The government is projected to raise as much as N1.8 trillion by the end of the quarter if it achieves the upper limit of the offer range across all three auctions.
The auctions are scheduled to take place on January 27, February 24, and March 24, 2025.
In 2024, the Federal Government borrowed an estimated N5.84 trillion from the FGN bond market in 2024 to bridge the budget deficit.
