The Federal Government, acting through the Debt Management Office, has unveiled plans to raise N300 billion from the bond market in an auction scheduled for May 26.
In an offer circular released on Thursday, the DMO disclosed that the issuance will consist of two bond reopenings: N100 billion from the 19.30% FGN April 2029 bond (with a five-year tenor) and N200 billion from the 19.89% FGN May 2033 bond (with a nine-year tenor).
The bonds are being offered in denominations of N1,000 each, with a minimum subscription requirement of N50,001,000 and subsequent investments in multiples of N1,000. Interest payments will be made semi-annually, while the principal will be repaid in full upon maturity.
Although these are reopenings of existing bonds, successful bidders will pay a price determined by the yield-to-maturity bid that clears the auction volume, plus any accrued interest.
The DMO highlighted that the bonds qualify as trustee-investible securities under the Trustee Investment Act. They also enjoy tax-exempt status for pension funds, as stipulated in the Company Income Tax Act and Personal Income Tax Act.
These debt instruments are listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange. Additionally, they qualify as liquid assets for banks when computing liquidity ratios.
This development comes as the DMO continues its debt issuance program. The PUNCH recently reported that the office allotted N4.3 billion worth of Federal Government Savings Bonds in its May 2025 offer.
The auction presents an opportunity for institutional and retail investors to participate in government securities while supporting national financing needs. Market analysts anticipate strong investor interest given the attractive yields and tax advantages offered by the instruments.
The DMO maintains that these bond issuances align with the government’s debt management strategy of diversifying funding sources and developing the domestic capital market. The proceeds are expected to support budget financing and infrastructure development projects across the country.
