The Federal Government of Nigeria (FGN) has opened a fresh investment opportunity, offering N200 billion worth of bonds through its Debt Management Office (DMO). The bonds, split equally between a 5-year and a 7-year tenor, are priced at N1,000 per unit, with a minimum subscription of N50,001,000. The announcement was made via the DMO’s official Twitter handle, signaling a call for high-value investors and institutions to participate.
The 5-year FGN bond, which matures in August 2030, and the 7-year bond, due in June 2032, both carry an attractive coupon rate of 17.95 percent, payable semi-annually. These “re-opening” bonds allow investors to buy into previously issued instruments, with payments scheduled in October, January, April, and July each year. The DMO emphasized that successful bidders will pay a price aligned with the yield-to-maturity, in addition to any accrued interest.
The subscription auction is set for September 29, 2025, with settlements occurring on October 2, 2025. Investors looking to participate must adhere to the minimum subscription threshold and multiples of N1,000 thereafter. This structured approach ensures both high-value participation and orderly investment management, attracting both institutional and individual investors with significant capital.
FGN bonds remain a highly favorable investment for pension funds and other regulated institutions. They qualify under the Trustee Investment Act and are recognized as government securities for tax exemptions under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA). Additionally, these bonds are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, offering liquidity for banks and other financial entities.
The latest bond offering highlights the government’s strategy to deepen the domestic debt market while providing investors with secure, high-yield opportunities amid Nigeria’s challenging economic environment. With the N200 billion offering, the FGN continues to attract investors seeking both stable returns and compliance with regulatory frameworks for institutional funds.
source: vanguard