Nigerian Govt to borrow N2.5tn through bond – DMO

The Nigerian Federal Government is aiming to generate N2.5 trillion through its upcoming second FGN bonds auction.

In a recent circular, the Debt Management Office announced that it has made offerings of N1.25 trillion with a maturity date of February 2031 and N1.25tn with a 10-year tenor.

FGN savings bonds are included in the federal government’s strategy for domestic borrowing.

In the previous year, the Federal Government generated approximately N7.06tn from the fixed-income market.

In line with the latest N28.8 trillion 2024 national budget, the Federal Government has estimated that its new borrowings will reach N7.83 trillion.

It is worth noting that back in December of last year, President Bola Tinubu requested approval from the National Assembly for approximately $8.69bn and €100m as a component of the external borrowing plan for the years 2022 to 2024.

Introducing the latest FG bonds, with a face value of N1,000. These bonds come with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000.

FGN bond interest payments are typically made twice a year.

In January, the FG announced the availability of a two-year FGN Savings bond with a maturity date of January 17, 2026, offering an interest rate of 11.033% per annum. Additionally, a three-year FGN Savings Bond with a maturity date of January 17, 2027, was also made available, offering an interest rate of 12.033% per annum.

The allocation for the two-year tenor bond is N603.42bn, while the three-year bond has been allocated N1.394tn.