FG Targets N1.2tn from Domestic Bonds in Q2

The Federal Government is set to raise between N900 billion and N1.2 trillion from the domestic bond market in the second quarter of 2025, a decrease from the N1.8 trillion raised in Q1.

This is based on the latest FGN Bond Issuance Calendar released by the Debt Management Office (DMO). The reduced target follows ongoing fiscal challenges, including high inflation, weaker oil revenues, and a record budget deficit of N13.08 trillion, representing 3.87% of the GDP.

The government plans to hold three auctions—on April 28, May 26, and June 23—offering two bonds per month. This is a departure from the Q1 pattern of three bonds per auction.

In Q2, April and May auctions will see the reopening of the 19.30% FGN APR 2029 and the 19.89% FGN MAY 2033 bonds. By June, two new tenors—FGN JAN 2030 (five years) and FGN JAN 2032 (seven years)—will be introduced.

Related News:

• FG to Raise N758bn Bond to Settle Pension Liabilities
• FG Rolls Out April Savings Bond with Attractive 17% Returns for Investors
• Nigeria Raises N1.94tn from Bond Investors in Q1 2025

For April, the government plans to raise N350 billion through the reopening of APR 2029 (N200bn) and MAY 2033 (N150bn). Each bond unit is priced at N1,000, with a minimum subscription of N50,001,000 and in multiples of N1,000 thereafter.

These bonds qualify as liquid assets, are tax-exempt under relevant laws, and are listed on the Nigerian Exchange and FMDQ OTC Securities Exchange.

With inflation at 24.23% and the Monetary Policy Rate at 27.5%, these high-yield bonds remain attractive to investors. The lower issuance target may be a strategy to manage borrowing costs amid tighter liquidity conditions.