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The Federal Government of Nigeria (FGN) has recorded overwhelming investor interest in its September bond auction, with subscriptions topping N1.26tn, more than six times the N200bn initially on offer.
According to the Debt Management Office (DMO), the auction, held on September 29, reopened two benchmark instruments: the 17.945% FGN August 2030 (five-year bond) and the 17.95% FGN June 2032 (seven-year bond). Both were settled on October 2, 2025.
For the five-year bond, the government offered N100bn but received 66 bids worth N231.79bn. Of these, 26 bids were allotted, amounting to N87.80bn at a marginal rate of 16.00%.
The seven-year bond attracted even stronger appetite, with 270 bids valued at N1.03tn against the N100bn on offer. Ultimately, 91 bids were successful, with N488.83bn allotted at a marginal rate of 16.20%.
While the allotments cleared at lower marginal rates, the DMO confirmed that the instruments will retain their original coupon rates of 17.945% (2030 bond) and 17.95% (2032 bond). In total, the government raised N576.62bn, highlighting investors’ sustained confidence in federal debt securities despite elevated interest rate conditions.
Analysts observed that the strong preference for longer-dated instruments—evidenced by the seven-year bond drawing more than four times the subscriptions of the five-year note—reflects robust demand from pension funds, banks, and asset managers seeking safety and attractive yields amid ongoing volatility in equities and currency markets.
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