Investors flock to FGN bonds as DMO’s November auction records N657bn

By Seun Ibiyemi

Nigeria’s Debt Management Office (DMO) has announced a strong investor turnout at its November 2025 Federal Government bond auction, with bids totaling about N657 billion, exceeding the combined offer size of N460 billion by more than 120 pet cent.

The auction, conducted on 24 November 2025 and set for settlement on 26 November, involved the reopening of two bond maturities, a 5-year and a 7-year instrument.

The 5-year 17.945 per cent FGN Aug 2030 bond, offered at N230 billion, attracted bids worth N147.87 billion, with N134.80 billion allotted at a marginal rate of 15.9 per cent.

In contrast, the 7-year 17.95 per cent FGN Jun 2032 bond drew significantly higher interest, receiving N509.39 billion in bids more than double the offer size. 

The DMO allotted N448.72 billion, along with a N6 billion non-competitive allotment, at a marginal rate of 16 per cent.

While the coupon rates for both instruments remain unchanged, allocation to investors was based on the auction yields, reflecting prevailing market conditions.

The overwhelming demand for the 7-year bond highlights investor preference for longer-term government securities in the current economic environment. 

The strong subscription levels signal confidence in Nigeria’s sovereign debt, even as the marginal yields show investors are pricing in inflation risks, currency volatility, and broader macroeconomic uncertainties.

By reopening existing bonds rather than issuing new ones, the Federal Government continues its strategy to extend debt maturities and deepen the domestic bond market.

Overall, the oversubscription underscores sustained institutional appetite for FGN bonds despite ongoing economic pressures.