Nigeria’s Federal Government Bonds (FGN Bonds) recorded a massive 307.6% oversubscription at the October 2025 auction, reflecting renewed investor confidence in government securities. The Debt Management Office (DMO) disclosed this in its monthly bond auction report, noting that total subscriptions hit ₦1.06 trillion, far exceeding the ₦260 billion initially offered.
According to the DMO, despite the strong demand, total allotments declined by 45.5% to ₦313.77 billion in October, compared to ₦576.62 billion in September. The reduction, analysts say, could signal the government’s cautious approach to borrowing amid evolving economic and fiscal conditions.
The auction featured two reopened instruments — the 17.945% FGN AUG 2030 (5-year bond) and the 17.95% FGN JUN 2032 (7-year bond) — each with an offer size of ₦130 billion. The shorter 5-year paper attracted ₦212.66 billion from 19 successful bids, while the 7-year bond drew a remarkable ₦845.63 billion from 75 investors.
A larger portion of the allotment went to the 7-year tenor, which received ₦225.97 billion, a 47.6% drop from September’s ₦488.83 billion. The 5-year tenor maintained its September allotment level at ₦87.8 billion. Interestingly, yields on both bonds moderated — the 5-year cleared at 15.83% (down from 16%), while the 7-year settled at 15.85%, down from 16.2% in the previous month.
Market analysts attribute the surge in subscriptions to a growing appetite for fixed-income assets amid economic uncertainties. The bid range also narrowed, indicating stronger market stability: investors priced the 5-year bond between 15% and 16.5%, while the 7-year ranged from 14.5% to 17.4%, both easing from September’s wider spreads.
source: vanguard