The Debt Management Office (DMO) has announced plans to reopen two Federal Government bonds — the FGN AUG 2030 and FGN JUNE 2032 — in a fresh auction scheduled for Monday, October 27, 2025. The offer, valued at ₦260 billion, will see ₦130 billion raised from each bond, both carrying coupon rates of around 17.95%.
The issuance, according to the DMO, is part of the Federal Government’s ongoing domestic borrowing program designed to fund the 2025 fiscal budget and manage its debt profile more efficiently.
Breakdown of the Bond Offering
The reopening covers two medium-term instruments — a five-year AUG 2030 bond at a coupon rate of 17.945%, and a seven-year JUNE 2032 bond at 17.95%. Both issues are being reintroduced to the market to take advantage of sustained investor demand for high-yield government securities.
Settlement for successful bids is expected on Wednesday, October 29, 2025, two days after the auction.
Investors will submit bids based on yield-to-maturity, and settlement prices will include accrued interest. The bonds will pay interest semi-annually, ensuring a steady cash flow for institutional investors such as pension funds, banks, and asset managers seeking reliable fixed-income returns in a high-yield environment.
Investor Demand Expected to Remain Strong
Market analysts anticipate strong participation from institutional players, given the attractive yields and risk-free nature of FGN bonds. With rates hovering around 18%, these instruments provide a compelling alternative to other domestic investment options, particularly amid persistent inflationary pressures.
Analysts also believe that the DMO’s decision to reopen these specific maturities aligns with its strategy to balance debt servicing obligations while sustaining liquidity in the secondary market. The bonds are already listed on both the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange, ensuring transparency and tradability for investors.
Government’s Commitment to Domestic Borrowing
The move follows the Central Bank of Nigeria’s Treasury Bills (T-Bills) auction held on October 22, where the CBN rolled over ₦650 billion in maturing bills across 91-day, 182-day, and 364-day tenors. The auction drew total bids of ₦750.91 billion, with the CBN allotting ₦391.58 billion at higher stop rates — 15.30%, 15.50%, and 16.14% respectively.
This underscores the government’s broader domestic borrowing approach, which focuses on refinancing existing obligations while maintaining investor engagement. By issuing long-term instruments like the FGN AUG 2030 and JUNE 2032, the DMO aims to deepen Nigeria’s bond market and stabilize funding costs.
Key Features of the New Auction
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Total Offer Size: ₦260 billion
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Instruments: Two reopenings
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₦130 billion – 17.945% FGN AUG 2030 (5-year tenor)
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₦130 billion – 17.95% FGN JUNE 2032 (7-year tenor)
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Auction Date: Monday, October 27, 2025
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Settlement Date: Wednesday, October 29, 2025
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Minimum Subscription: ₦50,001,000 and multiples of ₦1,000 thereafter
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Interest Payment: Semi-annual
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Redemption: Bullet repayment at maturity
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Listing: NGX and FMDQ OTC
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Eligibility: Tax-exempt under CITA and PITA for pension funds and certain institutional investors
Strong Sovereign Backing and Market Confidence
Both bonds are backed by the full faith and credit of the Federal Government of Nigeria, qualifying them as permissible investments under the Trustee Investments Act. They are also recognized as liquid assets for banks’ liquidity ratio requirements — a factor that makes them highly attractive to regulated financial institutions.
The combination of robust credit backing, tax incentives, and market liquidity continues to make Federal Government bonds the cornerstone of Nigeria’s fixed-income market. With this reopening, the DMO is reinforcing investor confidence while supporting fiscal sustainability through prudent domestic debt issuance.
