The Debt Management Office (DMO has announced the opening of subscriptions for a new round of Federal Government bond auctions totalling N460 billion.
The offer consists of two re-openings of previously issued instruments: N230 billion of the 17.945 per cent FGN August 2030 (5-Year Re-opening) and N230 billion of the 17.95 per cent FGN June 2032 (7-Year Re-opening).
According to a circular issued by the DMO, the auction is scheduled for December 15, 2025, while successful bidders will settle their allotments on December 17, 2025.
According to the offer circular issued on Tuesday, the DMO will receive bids for the following instruments: N230,000,000,000.00 – 17.945% FGN AUG 2030 (5-Year Re-opening); and N230,000,000,000.00 – 17.95% FGN JUNE 2032 (7-Year Re-opening).
The DMO stated that there was a strong display of investor appetite at its November 2025 government bond auction, with total bids reaching approximately N657 billion—more than 120% of the combined offer size of N460 billion.
For the 5-year FGN August 2030 issue, total bids stood at N147.869 billion, with N134.799 billion allotted. The marginal rate for successful bids was 15.9%.
For the 7-year FGN June 2032 issue, investor demand was even stronger, with total bids climbing to N509.392 billion. A total of N448.722 billion was allotted, in addition to a non-competitive allotment of N6 billion. The marginal rate cleared at 16 per cent.
According to the DMO, the units of sale are pegged at N1,000 per unit, with a minimum subscription of N50,001,000 and subsequent increments in multiples of N1,000.
The DMO said investors will not be bidding for new coupon rates since both instruments are re-openings of previously issued bonds,
The investors, the DMO noted, will pay market-driven prices determined by the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest on the instruments.
It added that interest on the bonds remains payable semi-annually, offering predictable cash flow, an attractive feature for pension funds, insurance firms, fund managers, and institutional investors seeking stable, medium-to-long-term returns.
Both instruments, it added, would be redeemed through bullet repayment at their respective maturity dates, ensuring investors are repaid the entire principal value at once.
