The Debt Management Office (DMO) has announced the reopening of two tranches of Federal Government of Nigeria (FGN) Bonds worth a combined N350 billion, scheduled for auction on April 28, 2025. The bonds will be offered at a unit price of N1,000, with a settlement date set for April 30.
According to a statement from the DMO, the offer includes two bonds:
- A five-year bond valued at N200 billion, maturing in April 2029, with an annual interest rate of 19.30%.
- A nine-year bond worth N150 billion, maturing in May 2033, with a 19.89% annual yield.
Each bond will be offered at N1,000 per unit, with a minimum subscription of N50,001,000, and subsequent investments must be in multiples of N1,000.
The DMO clarified that since these are reopenings of previously issued bonds, the coupon rates remain fixed. However, successful bidders will pay a price based on the yield-to-maturity that clears the auction, including any accrued interest.
Interest on the bonds will be paid semi-annually, while principal repayment will be made in full at maturity (bullet repayment).
The DMO also emphasized that the bonds qualify as government securities under the Trustee Investment Act, and enjoy tax exemptions under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PIA) for entities such as pension funds.
Additionally, the bonds will be listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, and they qualify as liquid assets for liquidity ratio calculations in banks.
“These FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of the country,” the DMO stated.
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