DMO Re-opens N260 billion AUG-2030, JUN-2032 Bonds on Monday

…offers 5-year and 7-year securities at nearly 18%  

Nigeria’s Debt Management Office (DMO) will on Monday, October 27, reissue the Aug-2030 and June-2032 bonds to raise up to N260 billion, N130 billion apiece at an interest rate of almost 18%.

The offer comprises two re-openings: N130 billion of the 17.945% FGN AUG 2030 (5-year tenor) and another N130 billion of the 17.95% FGN JUNE 2032 (7-year tenor).

The settlement for the auctions, aimed at financing budgetary requirements, is scheduled for Wednesday, October 29.

Attractive yields draw investor interest 

For the reopened issues, investors will bid based on yield-to-maturity levels at auction clearing, with accrued interest added to settlement pricing.

With coupon rates near 18%, the government aims to sustain investors’ appetite for medium-term maturities while managing refinancing exposure. Interest will be paid semi-annually, maintaining the appeal for institutional investors reliant on predictable cash flows.

Analysts expect robust participation from pension funds, asset managers, and banks seeking high real returns relative to alternative instruments.

Strong credit backing and market status 

The bonds retain their hallmark characteristics as premier sovereign securities. They are backed by the full faith and credit of the Federal Government and charged on Nigeria’s general assets.

The instruments qualify as permissible holdings under the Trustee Investments Act, and are recognized as tax-exempt for pension funds and certain other investors under CITA and PITA regulations.

Furthermore, both issues are already listed on the Nigerian Exchange Limited and FMDQ Securities Exchange, enhancing price transparency and tradability. Their designation as liquid assets ensures banks can use them in meeting the statutory liquidity ratio requirements.

Minimum subscription set at N50 million 

Access to the offering targets mainly large institutional and high-net-worth investors, given the minimum subscription level of N50,001,000 and subsequent multiples of N1,000 per unit.

Primary Dealer Market Makers (PDMMs), including leading commercial and merchant banks, have been authorized to receive applications and distribute the instruments to qualified subscribers nationwide.

What you should know  

The Central Bank of Nigeria (CBN) had on Wednesday, October 22, 2025, conducted a Treasury Bills (T-Bills) Primary Market Auction where it rolled over a total of N650 billion worth of maturing bills. The issuance, undertaken on behalf of the Debt Management Office (DMO), was split across three tenors — N100 billion for the 91-day, N100 billion for the 182-day, and N450 billion for the 364-day instruments.

The total bids reached N750.91 billion, surpassing the N650 billion offered by the Central Bank of Nigeria (CBN). However, the government allotted only N391.58 billion, reflecting the desire to scale down on debt obligations.

The 91-day, 182-day, and 364-day papers cleared at interest rates of 15.30%, 15.50%, and 16.14%, respectively—up from 15.00%, 15.25%, and 15.77% at the previous auction. True yields were even higher at 15.92%, 16.81%, and 19.25%.

This latest auction continues with an aggressive domestic borrowing strategy as the government works to close its fiscal deficit through long-term domestic market funding. By rolling over the maturing bills rather than issuing new debt, the government aims to refinance existing obligations without adding to its total debt stock, while sustaining investor participation in Nigeria’s fixed-income market and maintaining confidence in its short-term debt instruments.

FGN Bond auction: Key figures at a glance 

• Total Offer Size: N260 billion
• Instrument Structure: Two re-openings

1.       N130 billion – 17.945% FGN AUG 2030 (5-year)
2.       N130 billion – 17.95% FGN JUNE 2032 (7-year)

• Auction Date: 27 October 2025
• Settlement Date: 29 October 2025
• Unit Price: N1,000 per unit
• Minimum Subscription: N50,001,000 and multiples of N1,000 thereafter
• Coupon Rates: Approximately 17.95% for both maturities
• Interest Payments: Semi-annual
• Redemption: Bullet repayment at maturity
• Listing: Nigerian Exchange Limited (NGX) and FMDQ OTC
• Credit Backing: Full faith and credit of the Federal Government of Nigeria

Eligibility: 

• Pension fund tax exemption under CITA & PITA
• Recognized as a liquid asset for banks’ liquidity ratio calculations