FG plans to raise N300 billion from FGN bond market in May 

This is a 12.5% drop from the N350 billion offered in April 2025, signalling a modest shift in borrowing needs.

According to the May 2025 bond offer circular seen by Naijaonpoint on Thursday, the DMO is offering N100 billion worth of the 19.30% FGN APR 2029 (a 5-year bond re-opening) and N200 billion of the 19.89% FGN MAY 2033 (a 9-year bond re-opening).

The auction will be held on May 26, with settlement slated for May 28, 2025.

In contrast, the April 2025 auction featured a N200 billion offer for the same 5-year bond and N150 billion for the 9-year bond, amounting to a total of 350 billion.

The offer for the APR 2029 bond has been slashed by half, from N200 billion in April to N100 billion in May. Meanwhile, the MAY 2033 bond offer was increased by 33.3%, from N150 billion to N200 billion.

Both bonds are re-openings of previously issued instruments, meaning the coupon rates are fixed at 19.30% and 19.89% respectively, with auction participants bidding based on their preferred yield-to-maturity. The DMO will allot the bonds at clearing rates, factoring in accrued interest as applicable.

The decision to scale down the shorter-dated bond offering while boosting the longer tenor aligns with government efforts to extend its debt maturity profile. This strategy can reduce rollover risks and better align debt servicing with long-term fiscal planning.

The May auction continues the DMO’s monthly bond issuance calendar, which plays a crucial role in financing Nigeria’s fiscal deficit and managing debt sustainability.

All FGN bonds qualify as liquid assets for regulatory liquidity ratios and are listed on the Nigerian Exchange and FMDQ OTC Securities Exchange. This enhances tradability and attractiveness for institutional investors.

In its last few auctions, the DMO has witnessed significant oversubscription, suggesting that the May 2025 issuance is likely to attract robust demand despite the slight reduction in total offer size.

The bond market remains a critical funding channel for the government as it balances competing priorities of economic stimulus, debt sustainability, and investor confidence.