Nigeria To Raise N460bn Through Fresh FGN Bond Re-Openings

The Federal Government is seeking to raise a total of N460bn through two re-openings of existing Federal Government of Nigeria (FGN) Bonds, according to the Debt Management Office (DMO).

The offer, scheduled for auction on November 24, 2025, is part of the government’s efforts to strengthen domestic borrowing, enhance market liquidity, and support budget financing through long-term, low-risk instruments.

According to the DMO’s offer circular, the subscription will comprise N230bn for the 17.945 per cent FGN AUG 2030 bond (5-Year Re-opening) and N230bn for the 17.95 per cent FGN JUNE 2032 bond (7-Year Re-opening).

Settlement for successful bids will be completed on November 26, 2025.

The DMO explained that, as re-openings of existing issues, investors will not be bidding for new coupon rates.

Instead, the auction will be priced based on yield-to-maturity bids that clear the offered volumes, with subscribers also required to pay any accrued interest on the instruments.

Units of sale are pegged at N1,000 per unit, with a minimum subscription of N50,001,000 and subsequent bids in multiples of N1,000.

The structure is designed to accommodate institutional investors, including pension funds, insurance companies, fund managers, and other large-scale participants seeking secure medium-to-long-term investment options.

Interest on the bonds will continue to be paid semi-annually, ensuring predictable cash flows that remain attractive in a market environment characterised by fluctuating liquidity conditions.

Both instruments will be redeemed via bullet repayment at maturity, guaranteeing full principal repayment in a single tranche at the end of their respective tenors.

The planned auction underscores the Federal Government’s continued reliance on domestic capital markets to meet its financing needs while deepening the sovereign bond market and bolstering investor confidence in FGN securities.