The Federal Government has declared that three Federal Government of Nigeria (FGN) bonds totaling N450 billion will be available for subscription.
This was revealed in the DMO’s January 2025 FGN Bond Auction Results, which were released yesterday.
The N100 billion April 2029 FGN bond, which has a five-year reopening period and a yearly interest rate of 19.30 percent, is the first bond available. A seven-year reopening of a February 2031 FGN bond, worth N150 billion, with an annual interest rate of 18.50 percent, is the second offer.
A N200 billion, ten-year reopening of a January 2035 FGN bond is the third offer. These bonds will be put up for auction on January 27 and will be settled on January 29.
The bonds are sold for N1,000 each, with a N50 million minimum subscription. After that, they are sold in multiples of N1,000.
In reopenings of previously issued bonds, the DMO explained, successful bidders will pay a price equal to the yield-to-maturity offer that clears the auction volume, plus any interest that has accumulated.
When the bonds mature, the principal amount is scheduled for bullet payback, and interest is paid semi-annually. Charged against Nigeria’s general assets, these bonds have the full support of the Federal Government.
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Pension funds and other associated institutions are free from paying taxes since they are government securities under the Company Income Tax Act and the Personal Income Tax Act, as well as securities in which trustees may invest under the Trustee Investment Act.
The bonds also qualify as liquid assets for banks’ liquidity ratio calculations and are listed on the Nigeria Exchange Limited.
With its alluring investment prospects for both domestic and foreign investors, the DMO’s offering demonstrates the government’s commitment to generating money for important national projects and the N13 trillion 2025 budget deficit finance.
