DMO At Last Finalises Settlement for N100bn Oversubscribed FGN Bond

Nigeria’s Debt Management Office has said settlement for N100 billion bonds is scheduled for Wednesday, June 25, 2025.
This settlement marks the conclusion of the successful auction that attracted robust investor participation and significant oversubscription.
The auction, conducted on Monday, June 23, featured two separate bonds, each with a face value of N50 billion.
In a statement by the DMO, the issuance of the bond forms part of the Federal Government’s 2025 borrowing plan to finance the national budget and manage the country’s public debt sustainably through domestic sources.
Accoding to the statement, the most subscribed bond was a newly issued 7-year bond with a coupon rate of 17.95 percent and a maturity date of June 25, 2032. Details of the auction showed that the instrument generated strong market interest, receiving 209 bids amounting to N561.17 billion in subscriptions, over eleven times its offer size. Ultimately, 41 bids were successful, with N98.95 billion allotted to investors, which is approximated to N100 billion.
Similarly, the second offering was a re-opening of the 19.30 percent FGN APR 2029 bond (5-year tenor), which cleared at a marginal rate of 17.75 percent, slightly below its coupon rate. However, the DMO clarified that the original 19.30 percent coupon will remain in effect for interest payments.
Both bonds are priced at N1,000 per unit, with a minimum subscription requirement of N50,001,000 and additional purchases in multiples of N1,000. The interest on the instruments is payable semi-annually, providing a steady stream of income to investors. Principal repayment will be made in full at maturity through a bullet repayment structure, the DMO said.
Nigeria’s debt profile as of Quarter 1, 2025, stood at N101.9 trillion, with the domestic component accounting for about 60 percent. Meanwhile, the DMO has consistently maintained that the country’s debt profile remains within sustainable thresholds, citing ongoing reforms and revenue mobilisation efforts aimed at reducing fiscal deficits.