The Federal Authorities plans to lift between N900bn and N1.2tn from the home bond market within the second quarter of 2025, a pointy drop from the N1.8tn focused within the first quarter of the 12 months.

That is in response to the FGN Bond Issuance Calendar for Q2 2025, newly launched by the Debt Administration Workplace.

The diminished goal comes as the federal government faces a troublesome fiscal atmosphere characterised by weak oil receipts, elevated inflation, and a file N13.08tn finances deficit, representing 3.87 per cent of the nation’s Gross Home Product.

In line with the calendar, three auctions shall be held on April 28, Could 26, and June 23, with two bonds to be provided monthly.

The DMO plans to lift between N300bn and N400bn at every public sale, combining reopened bonds and new issuances.

In distinction, the Q1 2025 calendar featured three bonds per public sale, concentrating on between N450bn and N600bn month-to-month and as much as N1.8tn for the quarter.

Bonds provided included the 19.30 per cent FGN APR 2029, the 18.50 per cent FGN FEB 2031, and a debut 10-year FGN JAN 2035 bond. Every was provided inside a variety of N150bn to N200bn.

For Q2, the federal government has narrowed its public sale line-up to 2 bonds monthly. In April and Could, the DMO will reopen the 19.30 per cent FGN APR 2029 and 19.89 per cent FGN MAY 2033 bonds.

In June, it’s going to introduce two new points—the FGN JAN 2030 and FGN JAN 2032—with unique tenors of 5 and 7 years, respectively.

In April, the APR 2029 bond can have a remaining tenor of 4 years, whereas the MAY 2033 bond can have six years and one month left.

By Could, these phrases shorten to 3 years and eleven months, and 6 years, respectively. Each bonds retain their unique coupon charges of 19.30 per cent and 19.89 per cent.

The DMO has additionally launched particulars for its April public sale. The Federal Authorities plans to lift N350bn by the reopening of the APR 2029 and MAY 2033 bonds.

In line with the round, N200bn shall be provided within the APR 2029 and N150bn within the MAY 2033. The public sale shall be held on Monday, April 28, with settlement on Wednesday, April 30.

Every unit of the bond is priced at N1,000, with a minimal subscription of N50,001,000, and in multiples of N1,000 thereafter. Though the coupon charges are fastened, profitable bidders can pay a value based mostly on the yield-to-maturity and accrued curiosity as much as the settlement date.

The bonds pay curiosity semi-annually, whereas the principal is repaid in full at maturity. They qualify as securities below the Trustee Funding Act, are tax-exempt below the Firm Revenue Tax Act and Private Revenue Tax Act, and depend as liquid property for calculating banks’ liquidity ratios. They’re additionally listed on the Nigerian Alternate and FMDQ OTC Securities Alternate.

The DMO seems to be taking a extra measured strategy in Q2, doubtlessly in response to sustained demand from institutional buyers and evolving financial circumstances.

With inflation at 24.23 per cent in March and the Financial Coverage Price at 27.5 per cent, high-yield authorities bonds stay enticing.