Strong investor demand pushes FGN’s bond auction to N657bn in bids
Nigeria’s Debt Management Office (DMO) has announced a strong level of investor participation at the Federal Government’s November 2025 bond auction, with total bids reaching N657 billion—more than 120% of the offer size of N460 billion. The auction, conducted on 24 November 2025 with settlement scheduled for 26 November 2025, reopened two existing Federal Government […]
The Debt Management Office (DMO)
Nigeria’s Debt Management Office (DMO) has announced a strong level of investor participation at the Federal Government’s November 2025 bond auction, with total bids reaching N657 billion—more than 120% of the offer size of N460 billion.
The auction, conducted on 24 November 2025 with settlement scheduled for 26 November 2025, reopened two existing Federal Government of Nigeria (FGN) bonds: comprising 5-year 17.945% FGN Aug 2030 (maturing 27 August 2030) — Offer size: N230 billion and 7-year 17.95% FGN Jun 2032 (maturing 25 June 2032) — Offer size: N230 billion.
The auction results showed that the 5-Year (Aug 2030) Bond has total bids of N147.869 billion with N134.799 billion allotment and Marginal yield: 15.9%.
Though the coupon rates remain unchanged at 17.945% and 17.95%, the actual pricing for successful bidders was determined by the marginal yields at the auction, with investors paying the market-determined price plus any accrued interest.
The overwhelming demand for the 7-year bond, which attracted more than double its offer size, signals a strong investor preference for longer-tenor securities, according to analysts.
In contrast, the 5-year bond saw weaker demand, indicating a shift in appetite toward longer maturities despite macroeconomic uncertainties.
The marginal yields of 15.90% and 16.00% demonstrate that while demand remains strong, investors are still seeking higher returns—potentially in response to persistent inflation, currency volatility, and broader economic concerns.
By reopening existing issues rather than introducing new maturities, the Federal Government continues its strategy of lengthening the debt profile and deepening liquidity in the domestic bond market, which aligns with the DMO’s stated objectives.
The DMO emphasized that the auction was conducted in line with the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, CAP L17, Laws of the Federation of Nigeria 2004.
Each bond unit is priced at N1,000, with a minimum subscription of N50,001,000, and additional subscriptions accepted in multiples of N1,000.
Although coupon rates are fixed, investors at the auction pay based on the yield to maturity that clears the allotted volume, in addition to accrued interest from the last coupon payment up to the settlement date.