The Federal Government has disclosed its intention to raise N2.5 trillion in its upcoming auction of Federal Government of Nigeria (FGN) bonds, marking its second bond auction of the year.
The Debt Management Office (DMO) issued a circular on Wednesday outlining the details of the offering. The bonds on offer include N1.25 trillion with a maturity date set for February 2031 and another N1.25 trillion with a 10-year tenor.
FGN savings bonds are a component of the Federal Government’s domestic borrowing strategy, aimed at raising funds for various developmental projects and meeting financial obligations.
In the previous year, the Federal Government successfully raised approximately N7.06 trillion from the fixed income market. This year, the government has projected its new borrowings to reach N7.83 trillion.
President Bola Tinubu had sought approval from the National Assembly for external borrowing totaling about $8.69 billion and €100 million as part of the external borrowing plan for the period spanning 2022 to 2024.
The newly issued FG bonds have a face value of N1,000, with a minimum subscription requirement of N50,001,000, and subsequent increments allowed in multiples of N1,000. Interest payments on FGN bonds are typically made semi-annually.
In January, the Federal Government offered a two-year FGN Savings bond due on January 17, 2026, at an interest rate of 11.033 percent per annum, and a three-year FGN Savings Bond due on January 17, 2027, at an interest rate of 12.033 percent per annum. The auction allotted N603.42 billion for the two-year bond and N1.394 trillion for the three-year bond.
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