The Federal Government of Nigeria, via the Debt Management Office, aims to raise N300 billion from the domestic bond market in May 2025, marking a 12.5% decline from the N350 billion offered in April 2025.

This reduction suggests a moderate adjustment in borrowing strategy, possibly reflecting improved fiscal conditions, lower immediate funding requirements, or strategic debt management considerations.

In the May 2025 bond offer circular on Thursday, the DMO will reopen N100 billion of the 19.30% FGN APR 2029 (5-year) and N200 billion of the 19.89% FGN MAY 2033 (9-year).

The auction is scheduled for May 26, with settlement on May 28, 2025.

By comparison, the April 2025 auction offered N200 billion for the same 5-year bond and N150 billion for the 9-year bond, totaling N350 billion.

The offer for the APR 2029 bond has been cut by 50%, dropping from N200 billion in April to N100 billion in May. In contrast, the MAY 2033 bond offer rose by 33.3%, increasing from N150 billion to N200 billion.

Both are re-openings of existing bonds, meaning the coupon rates remain fixed at 19.30% and 19.89%, respectively. Investors will bid based on their preferred yield-to-maturity, while the DMO will allocate bonds at the clearing rates, accounting for accrued interest where applicable.

The move to reduce the shorter-term bond offering while increasing the longer-tenor issuance reflects the government’s strategy to extend its debt maturity profile.

This approach helps minimize rollover risks and supports more sustainable, long-term fiscal planning.

The DMO allotted a total of N397.898 billion across two reopened bond issues: the 19.30% FGN APR 2029 (5-year) and the 19.89% FGN MAY 2033 (9-year) bonds.

For the 5-year bond, which carries a coupon rate of 19.30%, the DMO allotted N21.127 billion across 13 successful subscriptions.

The 9-year FGN Bond, offering a higher yield of 19.89%, attracted stronger demand, with a total allotment of N376.771 billion from 137 successful subscriptions.

All FGN bonds qualify as liquid assets for regulatory liquidity ratios and are listed on both the Nigerian Exchange and FMDQ OTC Securities Exchange, boosting their tradability and appeal to institutional investors.