Nigeria to Raise N350 Billion in Upcoming February 2025 Bond Auction

The Federal Government of Nigeria (FGN), via the Debt Management Office (DMO), has announced an upcoming auction to raise N350 billion by offering Federal Government Bonds.

This target is lower than the N450 billion raised in January 2025.

The auction, set for February 24, 2025, will reopen two previously issued bonds:

• 19.30% FGN April 2029 bond, offering N200 billion
• 18.50% FGN February 2031 bond, offering N150 billion

Successful bids will be settled on February 26, 2025.

The initiative aligns with the government’s strategy to secure long-term funding for national expenditure and economic growth.

Offered in units of N1,000, with a minimum subscription of N50,001,000 and multiples of N1,000 thereafter, the bonds maintain fixed coupon rates of 19.30% (April 2029) and 18.50% (February 2031).

The final price will be determined by the yield-to-maturity bids. Investors must also cover accrued interest from the last coupon date to settlement.

Interest payments will be semi-annual, with principal repayment at maturity in a lump sum.

These bonds, qualifying as government securities under Nigerian tax laws, offer tax exemptions for pension funds and eligible institutional investors, making them attractive for long-term investment.

Listed on the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, the bonds offer liquidity for secondary market trading.

As liquid assets for banks, the bonds help meet regulatory liquidity requirements, ensuring stability while earning interest.

Backed by the full faith and credit of Nigeria, the bonds present minimal credit risk, ensuring interest and principal payments at maturity.

Investors can participate through authorized Primary Dealer Market Makers (PDMMs) like Access Bank, First Bank of Nigeria, Stanbic IBTC Bank, Citibank Nigeria, Guaranty Trust Bank, Zenith Bank, and more.