Oversubscription Drives FG’s December Auction Proceeds To N596.47bn

The Federal Government raised a total of N596.47bn from its December 15, 2025, bond auction, buoyed by strong investor appetite for the 2032 paper, data published by the Debt Management Office has shown.

The auction, which involved the reopening of two Federal Government of Nigeria bonds, saw demand heavily skewed toward the 17.95 per cent FGN June 2032 bond, which attracted subscriptions of N731.40bn, more than three times the N230bn offered.

From this tranche, the DMO allotted N494.48bn to competitive bidders, in addition to N4bn allotted through non-competitive bids, underscoring robust demand for mid-term government securities.

In contrast, the 17.945 per cent FGN August 2030 bond recorded subscriptions of N159.21bn against an offer size of N230bn.

The government allotted N101.99bn from the 5-year bond, with 38 bids successful out of 60 received, reflecting a more cautious appetite for the shorter tenor.

Both bonds were allotted at their respective marginal rates, with the August 2030 paper clearing at 17.20 per cent and the June 2032 bond at 17.30 per cent. Despite the marginal rate adjustments, the original coupon rates on the bonds remain unchanged at 17.945 per cent and 17.95 per cent, respectively.

Bids at the auction spanned a yield range of 15.00 per cent to 18.51 per cent for the 2030 bond and 15.00 per cent to 18.52 per cent for the 2032 bond, highlighting varied investor yield expectations amid prevailing market conditions.

The remaining tenors on the bonds stand at four years and eight months for the 2030 issue and six years and six months for the 2032 paper.

Market analysts say the strong oversubscription of the 2032 bond reflects investors’ preference for relatively longer-dated instruments offering attractive yields, as well as continued confidence in sovereign debt despite tight liquidity conditions.