On Monday, the Debt Management Office (DMO) held its monthly bond auction for the FGN, offering N225 billion but only receiving N123.9 billion (USD 288.7 million)
The bonds were put up for auction through reopenings of 2025, 2032, and 2042 FGN bonds.
Nigeria’s bonds are performing below expectations for the first time in several years. There was far less demand for the bonds, the DMO could secure a total bid of N142.3 billion (USD331.6m).
The bids for the benchmarks of three, ten, and twenty years were allocated at marginal rates of 11.0 per cent (up from 10.1 per cent), 13.5 per cent (up from 12.5%), and 13.7 per cent, respectively.
The DMO has set a domestic funding goal of N3.53 trillion to cover the N7.35 trillion estimated deficit in the FGN’s 2022 budget.
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