The Debt Management Office (DMO) has released the results of the April 2025 Federal Government of Nigeria (FGN) Bond Auction, in which it successfully allotted a total of N397.898 billion across two re-opening issues—the 19.30% FGN APR 2029 (5-Year Bond) and the 19.89% FGN MAY 2033 (9-Year Bond).
The auction held on April 28, 2025, and the settlement date is scheduled for April 30, 2025.
According to the DMO’s official data, the auction saw mixed investor interest across the two maturities.
The 2033 bond was oversubscribed significantly, while the shorter-dated 2029 note witnessed modest demand.
Breakdown of Auction Results:
- The 5-year FGN Bond, offered at a coupon rate of 19.30%, recorded a total allotment of N21.127 billion across 13 successful subscriptions.
- The 9-year FGN Bond, which carries a higher yield of 19.89%, garnered stronger interest, with a total allotment of N376.771 billion from 137 successful subscriptions.
The FGN bond continues to attract strong participation as Nigerians seek safer and more predictable returns amid broader market uncertainties.
- The relatively high interest rates for the April offer underscore the government’s bid to raise domestic capital while offering attractive yields to encourage savings.
- FGN bond is issued with a minimum subscription of N50,001,000.00 + multiple of N1,000.00 thereafter.
Investor Sentiment and Yield Dynamics
Investor appetite was clearly skewed toward the longer-dated 2033 bonds, which attracted N452.16 billion in total bids—more than triple the N150 billion on offer. This resulted in a competitive allotment of N376.77 billion and an additional N73 billion via non-competitive bids, pushing total allotments for the 2033 paper to N449.77 billion.
In contrast, the 2029 bond saw subdued demand, attracting bids worth N43.79 billion against an offer size of N200 billion. The DMO allotted only N21.13 billion competitively and N50 billion non-competitively, totaling N71.13 billion.
Both issues were allotted at marginal rates of 19.00% for the 2029 bond and 19.99% for the 2033 bond. However, the original coupon rates of 19.30% and 19.89%, respectively, will be maintained, the DMO stated.
Implications for the Market
The strong oversubscription of the 2033 paper suggests investors’ preference for longer-dated instruments in the current rate environment, likely driven by expectations of future monetary easing or sustained inflation hedging.
The results also signal continued confidence in the FGN bond market, despite ongoing macroeconomic uncertainties, as institutional investors position for yield and duration in anticipation of market shifts.
What you should know
Earlier this month, DMO successfully allotted a total of N4.34 billion in the April 2025 issuance of the Federal Government of Nigeria (FGN) Savings Bonds.
The allotment, which ran during the offer period from April 7 to 11, 2025, saw investors subscribe to two tenors: a 2-year bond maturing on April 16, 2027, and a 3-year bond maturing on April 16, 2028.