DMO allots N397.9bn in April 2025 FGN bond auction
The Debt Management Office (DMO) has published the outcome of the April 2025 Federal Government of Nigeria (FGN) Bond Auction, revealing a total allotment of N397.898 billion across two re-issued bonds, the 19.30 per cent FGN APR 2029 (5-Year Bond) and the 19.89 per cent FGN MAY 2033 (9-Year Bond).
The auction took place on 28 April 2025, with settlement scheduled for 30 April 2025.
Official figures released by the DMO indicate a varied response from investors, with interest leaning heavily towards the longer-dated 2033 paper, while the shorter-term 2029 issue generated more modest engagement.
The 5-year bond, offered with a 19.30 per cent coupon, attracted 13 successful bids resulting in an allotment of N21.127 billion. By contrast, the 9-year instrument, carrying a higher yield of 19.89 per cent, drew considerably more attention, with 137 successful subscriptions and a total allotment of N376.771 billion.
The sustained demand for FGN bonds reflects continued investor appetite for low-risk, yield-generating assets amid ongoing market volatility. The relatively elevated rates offered in the April auction illustrate the Federal Government’s efforts to attract domestic capital while encouraging savings with appealing returns.
FGN bonds are available with a minimum investment threshold of N50,001,000.00, with further investments accepted in multiples of N1,000.00.
Investor enthusiasm was clearly tilted towards the longer-term 2033 bond, which attracted bids worth N452.16 billion, more than triple the N150 billion initially offered. Of this, N376.77 billion was allotted through competitive bids, while an additional N73 billion was awarded through non-competitive bids, bringing the total to N449.77 billion.
The shorter 2029 bond saw a much lower level of participation, drawing bids totalling N43.79 billion against an offer of N200 billion. Ultimately, N21.13 billion was allotted competitively, with another N50 billion distributed non-competitively, resulting in a combined total allotment of N71.13 billion.
Despite the marginal rates at allotment being slightly below the original coupons—19.00 per cent for the 2029 bond and 19.99 per cent for the 2033—the DMO confirmed that the initial coupon rates of 19.30 per cent and 19.89 per cent will remain in effect.
The strong uptake of the 2033 issue points to a growing preference among investors for longer-duration instruments. This may reflect expectations of potential monetary policy easing, or a strategy to lock in higher yields as a hedge against inflation.
The auction results underline ongoing confidence in Nigeria’s sovereign bond market. Even in the face of macroeconomic headwinds, institutional investors appear to be strategically positioning themselves for yield and duration ahead of possible shifts in the interest rate landscape.
