Bonds
FG Plans to Raise N1.8tn from Bond Market in Q1 2025
The Federal Government plans to raise N1.8 trillion from the bond market in the first quarter of 2025, as announced by the Debt Management Office.
The newly released FGN Bond Issuance Calendar outlines a mix of re-opened and new bonds to be auctioned in January, February, and March 2025.
This initiative is part of the government’s strategy to address a projected budget deficit of N13.08 trillion in 2025, which is 3.87% of the country’s Gross Domestic Product. The bonds will be crucial for financing essential infrastructure and addressing fiscal gaps.
The bond calendar includes the re-opening of the 19.30% FGN APR 2029 bond, with a remaining tenor of four years and three months. The government plans to offer between N150 billion and N200 billion in each of the three auctions, making this bond a key component of the overall program.
Similarly, the 18.50% FGN FEB 2031 bond, with a tenor of six years and one month as of January 2025, will also be re-opened and offered within the same range of N150 billion to N200 billion per auction. Additionally, a new bond, the FGN JAN 2035, will be introduced to the market, targeting investors interested in longer-term instruments. This bond, with an original tenor of 10 years, will also be offered within the N150 billion to N200 billion range.
If the government reaches the upper limit of the offer range across all three auctions, it could raise up to N1.8 trillion by the end of the quarter. The auctions are scheduled for January 27, February 24, and March 24, 2025.
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Although the calendar is subject to change, this structured approach demonstrates the government’s commitment to transparency and predictability in meeting its financing needs.
In 2024, the Federal Government borrowed an estimated N5.84 trillion from the FGN bond market to bridge its 2024 budget deficit. This figure represents a 0.17% decline compared to the N5.85 trillion borrowed in 2023 through the Debt Management Office. Total subscription to FGN bonds was N7.09 trillion in 2024, despite a total offer of N5.72 trillion.
