Nigeria’s Debt Management Office (DMO) has commenced the final bond auction for 2025, aiming to help the federal government cover budget gaps and refinance debts that are coming due, while also opening subscriptions for the re-issuance of two bond tranches.
Next week, a ₦460 billion offer will open to both competitive and non-competitive investors, split evenly between two maturities. Bids will be invited for ₦230 billion of the 17.945 per cent FGN AUG 2030 paper and another ₦230 billion of the 17.95% FGN JUNE 2032 instrument.
The DMO confirmed that the auction is scheduled for Monday, 15 December 2025, while settlement will take place on Wednesday, 17 December. Each unit is priced at ₦1,000 with a minimum subscription threshold set at ₦50.001 million in line with statutory issuance guidelines. Coupons on both instruments will be paid semi-annually, while repayment of principal will follow a bullet structure at maturity.
According to the issuance notice, the bonds carry the full faith and credit of the Federal Government and qualify as eligible securities under the Trustee Investment Act. They also retain tax-exempt status for pension funds and other qualifying investors under the Company Income Tax Act and the Personal Income Tax Act.
In addition to their listing on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, the bonds are also recognised as liquid assets for banks’ liquidity computation purposes.
This announcement follows a robust November auction, where bids exceeded the ₦460 billion offer by over 120 per cent, reaching ₦657 billion, signaling sustained demand from pension funds, banks, and institutional investors seeking tax-exempt yields in a disinflationary environment.
The high coupons, reflecting earlier rate hikes continue to draw appetite despite the Central Bank’s recent pause on monetary tightening.
As detailed in recent fiscal updates, Nigeria’s 2025 borrowing has already surpassed targets by ₦4.55 trillion, with domestic debt hitting ₦15.8 trillion by October amid subdued oil revenues and elevated service costs.
The auction aligns with the ₦13.08 trillion budget deficit financing plan, now projected at 4.7 per cent of GDP by the IMF. With inflation cooling to 16.05 per cent in October and reserves bolstered to $40 billion post a $2.35 billion Eurobond tap last month, the event highlights stabilizing sentiment.
However, global oil price volatility and naira pressures (at ~₦1,500/USD) could influence yields, expected to hover around 15-16% based on secondary market trends.
Investors are advised to monitor the DMO website for real-time updates, as this remains a key liquidity event before year-end. The bonds qualify as trustee investments under the Trustee Investment Act and as liquid assets for banks’ ratios.
Successful bidders will be allotted at rates that clear the market based on yield-to-maturity, inclusive of accrued interest on the re-opened instruments. Interested institutional and retail investors are expected to submit bids via any of the accredited Primary Dealer Market Makers, including Access Bank, FBNQuest Merchant Bank, Standard Chartered Bank Nigeria and Zenith Bank, among others.
The DMO stated that it retains full discretion over allocation volumes, emphasising that the issuance aligns with the Federal Government’s 2025 domestic borrowing strategy aimed at deepening the local debt market while easing pressure from maturing debt lines.
The auction underscores the government’s commitment to managing the country’s fiscal obligations through a structured domestic issuance programme as the administration finalises its medium-term funding outlook.
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