DMO Announces N200 Billion Bond Sale to Nigerians With Up to 17.95% Return

• The Debt Management Office (DMO) will auction two Federal Government bonds worth N200 billion on August 25, with settlement on August 27
• According to the DMO, the bonds are available at a minimum subscription of N50,001,000, with further purchases in multiples of N1,000
• These bonds are tax-exempt for certain investors, qualify as liquid assets for banks, and are backed by the full credit of the Federal Government of Nigeria

Legit.ng journalist Victor Enengedi has over a decade’s experience covering Energy, MSMEs, Technology, Banking and the Economy.

The Debt Management Office (DMO) has announced the upcoming auction of two Federal Government of Nigeria bonds totalling N200 billion.

Each bond unit is priced at N1,000, and the auction is scheduled for August 25, with settlement set for August 27.

According to a statement released by the DMO, the bonds will be offered in two segments.

The first is a new five-year bond worth N100 billion, maturing in August 2030. The second offering is another N100 billion in a seven-year reopening bond, set to mature in June 2032.

This second tranche carries an annual interest rate of 17.95%, payable every six months.

The DMO explained that the bonds are available at a minimum subscription of N50,001,000, with further purchases in multiples of N1,000.

It added that for reopened bonds, successful bidders will pay a price determined by the yield-to-maturity that clears the auction volume, along with any accrued interest.

The statement partly read:

“For Re-openings of previously issued bonds (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument.”

Interest payments will be made twice a year, and the principal will be paid in full at the maturity date.

FGN bonds are recognised as liquid assets

The DMO also emphasised that these instruments qualify as trustee investments under the Trustee Investment Act and are considered government securities under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them tax-exempt for pension funds and other eligible investors.

Additionally, the bonds will be listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.

The DMO highlighted that all FGN bonds are recognised as liquid assets for banks’ liquidity ratio calculations and are backed by the full credit and assets of the Federal Government of Nigeria.

FG reassures investors of capital market stability

Meanwhile, Legit.ng earlier reported that the federal government has reassured investors and key stakeholders that their assets in the Nigerian capital market remain safe despite the nation’s current economic challenges.

The pledge was made by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, who highlighted the critical role of the capital market in mobilising funds for economic development and financing social infrastructure.

He further stressed the government’s commitment to strengthening investor confidence and ensuring the market continues to serve as a reliable platform for growth.