DMO To Auction ₦200 Billion FGN Bonds

By JOSEPH CHIBUEZE, Abuja

The Debt Management Office (DMO) is offering the ₦200 billion Federal Government of Nigeria (FGN) bonds in August for subscription by auction.

The DMO, in a statement posted on its official website yesterday, announced that the auction would take place on Monday 25 August 2025, with settlement fixed for Wednesday 27 August 2025.

The offer comprises two bonds: ₦100 billion FGN July 2030 (a five-year tenor re-opening) and ₦100 billion 17.95 per cent FGN June 2032 (a seven-year tenor re-opening).

The bonds are available in units of ₦1,000, with a minimum subscription set at ₦50,001,000. Investors may increase their subscriptions in increments of ₦1,000.

They offer semi-annual interest payments, ensuring consistent income for holders, and will be redeemed in full upon maturity, providing a lump-sum repayment.

According to the DMO, tax exemptions under the Company Income Tax Act and the Personal Income Tax Act apply to the bonds, making them particularly attractive to pension funds and other approved investors.

Listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, the bonds are easily accessible and tradable.

Also, financial institutions can use them to meet liquidity ratio requirements, as they are recognised as liquid assets.

The bonds are backed by the full faith and credit of the Federal Government, adding a layer of security for investors.

The government guarantee, charged upon the country’s general assets, further enhances the appeal of the bonds as a low-risk investment option.

Combined with reliable interest payments, they offer a stable and predictable return for investors seeking fixed-income assets.

To participate in the auction, prospective investors are to subscribe through authorised primary dealer market makers such as Access Bank, Zenith Bank, Stanbic IBTC Bank and United Bank for Africa.

The domestic borrowing is to finance the 2025 budget deficit of over ₦14 trillion.

(The Guardian)