The federal government has opened a new window for domestic investors with the offer of N460 billion in reissued Federal Government of Nigeria (FGN) bonds.<\/p>\n
This was contained in a circular released on Tuesday, November 18, 2025, by the Debt Management Office (DMO). According to the office, this fresh offer, scheduled for auction on November 24, 2025, is part of ongoing efforts to strengthen Nigeria\u2019s domestic borrowing strategy, deepen market liquidity, and support budget financing through stable, long-term instruments.<\/p>\n
The circular states that the auction would feature two existing bonds being reopened for subscription. The first is the 17.945 percent FGN AUG 2030 bond with a new offer size of N230 billion, while the second is the 17.95 percent FGN JUNE 2032 bond, also valued at N230 billion. The DMO noted that successful bidders will complete settlement on November 26, 2025.<\/p>\n
In its offer circular, the DMO explained that each bond would be sold at N1,000 per unit, with a minimum subscription set at N50,001,000 and incremental bids allowed in multiples of N1,000. Since both instruments are reopenings rather than fresh issues, investors will not be competing for new coupon rates. Instead, the final pricing will be determined by market-driven yield-to-maturity bids, alongside any accrued interest on the bonds at the time of purchase.<\/p>\n
The office also explained that investors would continue to enjoy semi-annual interest payments, a feature that provides steady cash flow and has made these instruments particularly attractive to pension funds, insurance companies, institutional asset managers, and other long-term investors. According to the DMO, the bonds will be redeemed through bullet repayment at maturity, guaranteeing that the full principal amount is returned in a single payment.<\/p>\n
The DMO also emphasized the protections and advantages attached to FGN Bonds. The instruments qualify as trustee investments under Nigerian law and are recognized as government securities under both the Company Income Tax Act (CITA) and the Personal Income Tax Act, (PITA)offering tax exemption benefits for pension funds and similar regulated entities.<\/p>\n
They are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, which provides transparency, secondary market liquidity, and efficient price discovery. Banks may also classify the bonds as liquid assets for regulatory liquidity ratio requirements. Above all, the securities are backed by the full faith and credit of the Federal Government of Nigeria and charged on the nation\u2019s general assets, providing the highest level of sovereign guarantee available in the domestic market.<\/p>\n
The November auction comes at a time when Nigeria faces shifting fiscal demands and a challenging global financial environment. With rising external borrowing costs and persistent pressure on the exchange rate, the government has continued to rely on domestic bond offerings to fund budget deficits, refinance maturing obligations, and stimulate activity within the local debt market. The latest issuance reinforces that direction, offering investors a secure avenue for stable returns while supporting the country\u2019s broader financial stability goals.<\/p>\n
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