Omotayo Adigun
The Debt Management Office (DMO) has announced the reopening of two Federal Government of Nigeria (FGN) bonds worth a combined ₦350 billion, with subscriptions set to open at ₦1,000 per unit.
In a statement released Wednesday, April 23, 2025, the DMO said the auction will take place on April 28, with settlement scheduled for April 30. The bonds are aimed at both retail and institutional investors, offering attractive returns and tax advantages.
The offering is split into two tranches:
₦200 billion in a five-year bond maturing in April 2029, with a coupon rate of 19.30% per annum.
₦150 billion in a nine-year bond maturing in May 2033, with a coupon rate of 19.89% per annum.
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Each bond unit is priced at ₦1,000, with a minimum subscription of ₦50,001,000, and additional purchases in multiples of ₦1,000. Although the coupon rates are fixed, successful bidders will pay a price that reflects the yield-to-maturity determined at auction, plus any accrued interest.
The DMO emphasized that interest will be paid semi-annually, while the principal will be repaid in full at maturity. These bonds qualify as trustee investments under the Trustee Investment Act and enjoy tax exemptions under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PIA) for eligible investors, including pension funds.
The bonds are listed on the Nigerian Exchange Limited (NGX) and the FMDQ OTC Securities Exchange, and are recognized as liquid assets for banks’ liquidity ratio requirements. They are fully backed by the credit and general assets of the Federal Government.
The DMO urged interested investors to subscribe through Primary Dealer Market Makers (PDMMs). This auction follows a similar reopening in March, where ₦300 billion worth of FGN bonds were offered.