FG Offers N450 Billion in FGN Bonds for Subscription

The Federal Government has announced the sale of three Federal Government of Nigeria (FGN) bonds totaling N450 billion.

Details of the offering, as outlined in the January 2025 FGN Bond Auction Results released by the Debt Management Office (DMO), include:

• A five-year bond of N100 billion maturing in April 2029, with an annual interest rate of 19.30%.
• A seven-year bond of N150 billion maturing in February 2031, offering an 18.50% annual interest rate.
• A ten-year bond of N200 billion maturing in January 2035.

The auction date is January 27, with settlement scheduled for January 29.

Each bond is priced at N1,000 per unit, with a minimum subscription requirement of N50 million and additional purchases in multiples of N1,000.

The DMO clarified: “For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest.”

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Interest on the bonds will be paid semi-annually, while the principal amount will be fully repaid at maturity. These bonds are fully guaranteed by the Federal Government and are charged against Nigeria’s general assets.

The bonds qualify as approved investments under the Trustee Investment Act and are also classified as government securities under the Company Income Tax Act and Personal Income Tax Act. This status provides tax exemptions for pension funds and other qualifying entities.

Listed on the Nigeria Exchange Limited, the bonds are also considered liquid assets for banks in calculating their liquidity ratios.

This issuance underscores the government’s focus on financing the N13 trillion 2025 budget deficit and funding critical national projects, while offering attractive investment opportunities to both domestic and international investors.