Debt Management Office (DMO) announces public auction of N350bn FGN bonds

Thursday, April 24, 2025 - The Debt Management Office (DMO) has announced the reopening of two Federal Government of Nigeria (FGN) bonds for public auction, with a total value of N350 billion, offering units at a subscription price of N1,000 each. 

The savings bonds are designed for retail investors and come with guaranteed quarterly interest payments and full repayment of the principal at maturity.

According to a statement released on Wednesday, April 23, the auction is scheduled for April 28, with settlement on April 30. The bond offers will be issued in two tranches. The first tranche comprises a N200 billion five-year bond due to mature in April 2029 with an annual interest rate of 19.3 percent. The second tranche is a N150 billion nine-year bond set to mature in May 2033, carrying an annual interest rate of 19.89 percent

Each bond unit is priced at N1,000, with a minimum subscription of N50,001,000 and subsequent subscriptions in multiples of N1,000. For these reopened issues, where the coupon rates are already fixed, successful bidders will pay an amount corresponding to the yield-to-maturity that clears the auction volume, in addition to any accrued interest on the bond.

Interest payments will be made semi-annually, with the full principal repaid in a single bullet payment at maturity. The DMO emphasized that these savings bonds qualify as government securities under the Trustee Investment Act and are recognized for tax exemptions under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PIA), making them attractive for pension funds and other institutional investors.

The bonds are also listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange and qualify as liquid assets for liquidity ratio calculations for banks. Backed by the full faith and credit of the Federal Government of Nigeria, the bonds are secured against the nation’s general assets.

The DMO encouraged interested investors to contact any of the designated Primary Dealer Market Makers (PDMMs) to participate in the auction. This initiative follows a similar reopening of FGN bonds worth N300 billion in March.