The Federal Government of Nigeria (FG), through the Debt Management Office (DMO), has announced the offering of N260 billion worth of Federal Government Bonds for subscription at its October 2025 auction, as part of its strategy to raise funds for budget implementation and public projects.
The auction, scheduled to hold on October 28, 2025, will feature four re-openings of previously issued bonds with varying maturities, providing investors with opportunities for long-term, risk-free investments backed by the full faith and credit of the Federal Government.
According to a circular issued by the DMO in Abuja, the bonds are being offered across four maturities as follows:
- N65 billion – FGN APR 2029 (7-Year tenor)
- N65 billion – FGN FEB 2031 (10-Year tenor)
- N65 billion – FGN JUN 2033 (15-Year tenor)
- N65 billion – FGN MAY 2038 (20-Year tenor)
All four bond series are re-openings, meaning they were previously issued and will be re-offered to investors at current market yields. The DMO said the interest rate for each bond would be determined by competitive bidding at the auction.
The bonds, which are backed by the Federal Government’s guarantee, are open to multiple categories of investors including:
Individuals, Institutional investors, Pension Fund Administrators (PFAs), Insurance companies, Mutual funds, and Other financial institutions.
They qualify as government securities for the purposes of meeting liquidity requirements for banks and other financial institutions, and are tax-exempt for pension funds under the Pension Reform Act 2014.
The DMO explained that the offer is part of the government’s ongoing efforts to finance its budget deficit and stimulate growth in the domestic debt market.
“The Federal Government of Nigeria bonds are backed by the full faith and credit of the Federal Government and are among the safest investments in the domestic market,” the statement read.
Analysts say the October auction comes amid rising interest from both local and foreign investors following a series of reforms aimed at stabilizing the naira, tightening monetary policy, and restoring investor confidence in Nigeria’s fixed-income market.
Investment analysts at Cordros Securities and Chapel Hill Denham noted that the DMO’s recent bond auctions have recorded oversubscription, reflecting renewed appetite for naira-denominated assets amid elevated yields and inflationary concerns.
“Investors are seeking safe havens for capital preservation,” said Olumide Ajayi, a fixed income analyst based in Lagos. “With yields now ranging between 17 and 20 percent, FGN bonds remain attractive compared to other asset classes, especially given their security and tax incentives.”
The analyst added that the government’s improved transparency in debt management has strengthened the credibility of bond issuances.
Nigeria’s domestic debt market has become a key financing source for infrastructure and social development, particularly as external borrowing conditions tighten globally.
By raising funds through local bonds, the government aims to:
- Reduce dependence on foreign loans,
- Strengthen domestic debt sustainability, and
- Support long-term capital market growth.
As of mid-2025, Nigeria’s total public debt stood at approximately N97 trillion, according to DMO data. Out of this, about 70 percent was attributed to domestic borrowing.
Experts argue that maintaining a balanced mix of domestic and external debt is vital for reducing currency risk and managing repayment costs effectively.
For investors, FGN bonds remain one of the most stable instruments in the market, offering regular semi-annual interest payments and capital repayment at maturity.
According to the DMO, successful bidders at the auction will receive allotments at their respective bid rates, and interest payments will be made every six months until maturity.
“Bond investors are not only supporting national development,” said DMO Director-General Patience Oniha, “but also earning competitive returns on their funds in a secure and transparent market.”
With the October auction, Nigeria’s debt office continues to demonstrate its commitment to deepening the domestic capital market and financing critical government projects through transparent borrowing mechanisms.
As inflation remains high and interest rates adjust, analysts expect demand for government securities to remain strong among institutional investors and households seeking stability in uncertain times.
The DMO’s N260 billion bond offer is, therefore, not just a fiscal instrument it’s a reaffirmation of Nigeria’s resilience and confidence in its long-term economic recovery path.
