The Debt Management Office (DMO) says it successfully raised a total of N669.94 billion, with N606.46 billion allotted across three bond tenors in the January 2025 Federal Government of Nigeria (FGN) bond auction.
The success of the auction is a boost to the government’s bid to finance critical infrastructure projects and support budgetary needs through domestic borrowing.
Announcing the success of the auction, the DMO gave details of the auction as follows: “Total amount raised-N669.94bn Total amount allotted- N606.46bn Details: 19.30% FGN APR 2029 – allotted N78.86bn at 21.79% 18.50% FGN FEB 2031 – allotted N159. 29bn at 22.5% 22.60% FGN JAN 2035 – allotted N368.31bn at 22.6%.”
The auction saw strong investor participation across the three tenors offered, with competitive yields reflecting prevailing market conditions.
Below is a detailed breakdown of the bonds allotted: “19.30% FGN APR 2029: Amount Allotted: N78.86 billion, Yield: 21.79%; 18.50% FGN FEB 2031: Amount Allotted: N159.29 billion, Yield: 22.50%; and 22.60% FGN JAN 2035: Amount Allotted: N368.31 billion, Yield: 22.60%.”
The high subscription levels is indicative of investors’ continued confidence in the government’s debt instruments, driven by attractive yields and Nigeria’s stable credit ratings.
The yields for the bonds reflect current market dynamics, providing investors with a competitive return on investment while enabling the government to secure funding for priority projects.
Also, the allotment of N368.31 billion to the 2035 bond underscores the government’s commitment to securing long-term funding for infrastructure and development initiatives.
The proceeds from this bond auction will bolster the government’s efforts to finance critical projects across sectors, including infrastructure, health, and education and also help address fiscal deficits while providing stable investment opportunities for institutional and retail investors.