Nigeria: FG’s October 2024 Bond Auction Oversubscribed by N109bn

The Federal Government’s October 2024 bond auction has been significantly oversubscribed by N109 billion, reflecting strong investor confidence despite economic challenges.

According to the Debt Management Office (DMO), the auction, which took place on Monday, October 21, raised N289.597 billion, surpassing the initial offering of N180 billion. The auction included two re-opened tranches of existing bonds: the 19.30% FGN APR 2029 (5-year bond) and the 18.50% FGN FEB 2031 (7-year bond), with N90 billion allocated to each.

Analysts noted that the oversubscription highlights investor trust in the government’s debt instruments, even as the economy faces pressure from rising inflation.

For comparison, in September 2024, the government offered N190 billion across three bond tenors—5-year, 7-year, and 9-year—showing a slightly higher allocation compared to the October auction. Despite these economic hurdles, the robust demand for the government’s bonds underscores the resilience of Nigeria’s debt market.