The Debt Management Office (DMO) has announced the reopening of two Federal Government of Nigeria (FGN) bonds worth a combined ₦350 billion, available for public auction at a unit price of ₦1,000.
Targeted at retail and institutional investors, the bonds offer semi-annual interest payments and full repayment of the principal upon maturity. The auction is scheduled for April 28, with settlement on April 30, 2025.
According to the DMO’s statement released on April 23, the offer includes two tranches:
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₦200 billion five-year bond maturing in April 2029, with an annual interest rate of 19.30%
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₦150 billion nine-year bond maturing in May 2033, with an annual interest rate of 19.89%
Each bond unit is priced at ₦1,000, with a minimum subscription of ₦50,001,000, and additional investments required in multiples of ₦1,000. Since these are reopened issues with fixed coupon rates, successful bidders will pay a price based on the yield-to-maturity that clears the auction, along with any accrued interest.
The bonds are recognized as government securities under the Trustee Investment Act and benefit from tax exemptions under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them especially attractive to pension funds and institutional investors.
Additionally, the bonds are listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, and qualify as liquid assets for banks under liquidity ratio requirements. The bonds are fully backed by the credit and assets of the Federal Government of Nigeria.
The DMO encouraged interested investors to contact any of the approved Primary Dealer Market Makers (PDMMs) to participate in the auction. This issuance follows a similar ₦300 billion bond reopening conducted in March.
