The Federal Government of Nigeria, through the Debt Management Office (DMO), has announced the issuance of bonds worth N120 billion for November 2024.
This represents a 33.3% decrease compared to the N180 billion raised in the previous month.
It is also one of the lowest amounts offered this year, as the Federal Government seems to slow down on bond offerings.
The 33.3% reduction in November indicates a shift in borrowing strategy, possibly reflecting reduced funding needs or improved revenue inflows.
The bonds qualify as securities in which trustees can invest under the Trustee Investment Act. They also enjoy tax exemptions under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them attractive for pension funds and institutional investors.
Additionally, the bonds are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, ensuring tradability and liquidity.
Naijaonpoint earlier reported that the Federal Government secured N289.597 billion from its October 2024 bond auction.
Despite offering a lower amount, the total allotment for October surged to N289.597 billion, highlighting heightened investor demand for government securities.
The October auction witnessed a notable increase in marginal rates, reflecting investors’ expectations for higher yields amid inflation concerns and tighter monetary policies.