FG raises N669.94b from January bond auction

The Debt Management Office (DMO) has announced that it raised the sum of N669.94 billion from the January 2025 Federal Government of Nigeria (FGN) bond auction held on Monday.

Announcing the result via its official X handle on Tuesday, DMO said the 19.30 per cent FGN APR 2029, allotted N78.86 billion at a 21.79 per cent yield; 18.50 per cent FGN FEB 2031 – allotted N159.29 billion at a 22.5 per cent yield; and 22.60 per cent FGN JAN 2035 – allotted N368.31 billion at a 22.6 per cent yield.

The total allotment across the three bond tenors was N606.46 billion. This amount is higher than the N450 billion original target to come from the auction by N219.94 billion and also higher than the N360 billion offered in January 2024 and the N120 billion offered in December 2024.

It said this marks another significant milestone in the government’s bid to finance critical infrastructure projects and support budgetary needs through domestic borrowing.

According to the DMO, the auction saw strong investor participation across the three tenors offered, with competitive yields reflecting prevailing market conditions.

It said the robust subscription levels highlight continued investor confidence in the government’s debt instruments, driven by attractive yields and Nigeria’s stable credit ratings.

Last year, the Federal Government borrowed an estimated N5.84 trillion from the FGN bond market amid a move to bridge its 2024 budget deficit.

However, the figures represent a 0.17 per cent decline when compared to the N5.85 trillion borrowed in 2023 through the Debt Management Office.

Total subscription to FGN bonds was N7.09 trillion in 2024 despite a total offer of N5.72 trillion.

This year, the country is hoping to borrow more to finance its budget deficit of N13.08 trillion in 2025.