Economy
FG Borrows N669.94 Billion in 2025 Bond Auction
The federal government of Nigeria has successfully raised its first domestic debt in 2025, securing N670 billion from its latest bond auction.
The auction was oversubscribed by over 10%, indicating strong investor interest. This debt is spread across three tenor options, with repayment set to begin in January 2027.
The Debt Management Office (DMO) announced the successful bond auction on its X handle (formerly Twitter), noting that the auction raised N669.94 billion compared to the N606.46 billion initially allotted. The funds raised will be used to finance major infrastructural projects and address the 2025 budget deficit.
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The DMO’s post read:
“FGN BOND AUCTION RESULTS (JANUARY 2025). Total amount raised-N669.94bn, Total amount allotted- N606.46bn. Details: 19.30% FGN APR 2029 – allotted N78.86bn at 21.79% 18.50%; FGN FEB 2031 – allotted N159.29bn at 22.5% 22.60%; FGN JAN 2035 – allotted N368.31bn at 22.6%.”
Earlier, on January 27, 2025, the DMO held a bond auction for N450 billion worth of FGN bonds. The offer started at N50.001 million and could be made through any of the Primary Dealer Market Makers (PDMM) such as First Bank and Access Bank.
On January 13, 2025, the DMO listed the first offer on the FGN Bonds, with tenors of 17.235% and 18.235%.
The DMO’s announcement stated:
“The DMO is offering you your first investment opportunity of the year with the: 2-year FGN Savings Bond at 17.235%; 3-year FGN Savings Bond at 18.235%. Offer opens today and closes Friday, January 17. Contact your stockbroker to invest today!”
The funds raised through these bond auctions will be used to finance the 2025 budget deficit and major infrastructural projects. Nigeria’s public debt reached N142.3 trillion as of September 30, 2024.
The bond auction was oversubscribed by 10.43%, with investors showing strong interest across all three tenors. Nigerian market analyst Olumide Adesina explained that the attractive yields contributed to the oversubscription.
