118
FGN Raises N448bn as Investors Rush April Bonds
Daniel Adaji
The Federal Government has raised N448bn from its April 2025 bond auction, reflecting strong investor confidence in government securities despite high interest rates.
Data released by the Debt Management Office (DMO) and obtained by Pointblank News on Tuesday showed that the auction featured two reopened bonds: the 19.30% FGN April 2029 (5-year tenor) and the 19.89% FGN May 2033 (9-year tenor).
The government offered a total of N350bn—N200bn for the 5-year bond and N150bn for the 9-year bond—but investor demand exceeded expectations.
Bids for the 5-year bond reached N43.79bn. Of this, N21.13bn was allotted competitively, while a non-competitive allotment added another N50bn, bringing the total to N71.13bn.
The 9-year bond received far greater interest, with total subscriptions at N452.16bn. The government allotted N376.77bn competitively and N73bn through non-competitive allotment, resulting in a total of N449.77bn raised from that instrument.
The marginal (cut-off) interest rates stood at 19.00% for the 5-year bond and 19.99% for the 9-year bond. However, the coupon rates—what the government pays bondholders regularly—remain unchanged at 19.30% and 19.89%, respectively.
Bond auctions are a key tool for the federal government to raise funds to finance the national budget and support infrastructure development.
The strong turnout in April’s auction highlights investor confidence in Nigeria’s fixed-income market, even as the Central Bank maintains high interest rates to manage inflation.