The Debt Management Office (DMO) has raised ₦136.16 billion from the Federal Government of Nigeria (FGN) bond auction held in August 2025.

A circular posted on DMO’s website on Tuesday said the auction featured the 17.945% FGN AUG 2030 (new 5-year bond) and the 17.95% FGN JUN 2032 (re-opening, 7-year bond), each with an offered size of ₦100 billion.

The 5-year bond attracted 70 bids worth ₦102.36 billion, out of which the DMO allotted ₦46.01 billion at a marginal rate of 17.945%. Bid rates for this instrument ranged between 12.50% and 21.50%.

The 7-year bond garnered stronger interest, with 111 bids amounting to ₦165.81 billion. The DMO allotted ₦90.16 billion at a marginal rate of 18%, within a bid range of 15% to 22%.

According to the DMO, the bond issuance was carried out in compliance with the Debt Management Office (Establishment) Act, 2003, and the Local Loans (Registered Stock and Securities) Act, CAP. L17, Laws of the Federation of Nigeria 2004.

Each unit of the bonds is priced at ₦1,000, with a minimum subscription amount of ₦50,001,000. Additional subscriptions must be made in multiples of ₦1,000.

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Although the coupon rates are predetermined, successful bidders at the auction pay a price based on the yield-to-maturity that clears the offered volume, along with any accrued interest from the last interest payment date up to the settlement date.

Interest on both bonds is payable semi-annually, providing bondholders with regular income during the tenor of the instruments.

The bonds will be repaid in full on their respective maturity dates through bullet repayment, meaning the principal will be paid back in a single lump sum.

In July 2025, DMO announced that ₦185.9 billion had been successfully allotted across two reopened bond offerings. This is more than the allotment for August.

The auction featured the re-opening of two previously issued FGN bonds: ₦20 billion for the 19.30% FGN APR 2029 bond with a five-year tenor, and ₦60 billion for the 17.95% FGN JUN 2032 bond with a seven-year maturity.

The auction garnered ₦39.075 billion in total subscriptions for the 5-Year FGN APR 2029 bond and an impressive ₦261.597 billion for the 7-Year FGN JUN 2032 bond.

Out of these bids, the DMO allotted ₦13.430 billion for the APR 2029 bond and ₦172.502 billion for the JUN 2032 bond—amounting to a total allotment of ₦185.932 billion, well over the initial offer size.

While the bonds retained their original coupon rates of 19.30% and 17.95% respectively, they were allotted at marginal rates of 15.69% for the 5-Year bond and 15.90% for the 7-Year bond.

The bond re-openings attracted a total of 149 bids, 40 for the 2029 maturity and 109 for the 2032 maturity. Of these, 74 bids were successful (15 and 59, respectively).