By Elizabeth Adegbesan
The Nigerian Federal Government, through its Debt Management Office (DMO), has announced the issuance of two bond offerings: a 5-year and a 7-year bond, each valued at ₦100 billion. These bonds are available for subscription at a price of ₦1,000 per unit.
According to the DMO’s recent update on Twitter, investors must subscribe with a minimum amount of ₦50,001,000, with additional subscriptions accepted in increments of ₦1,000.
The 5-year bond, a reopening issue, matures in August 2030, while the 7-year bond, also a reopening, matures in June 2032. Both bonds carry a fixed coupon rate of 17.95%, payable twice a year.
The auction for these bonds is scheduled for September 29, 2025, with settlement set for October 2, 2025. Coupon payments will be made quarterly on the 16th of October, January, April, and July.
In the official statement, the DMO clarified: “On behalf of the Federal Government, we invite bids for ₦100 billion at 17.945% for the August 2030 5-year bond reopening, and ₦100 billion at 17.95% for the June 2032 7-year bond reopening. The auction date is September 29, 2025, with settlement on October 2, 2025.”
Subscription details specify a unit price of ₦1,000, with a minimum purchase threshold of ₦50,001,000 and subsequent increments of ₦1,000.
Regarding pricing and interest, the DMO explained: “For bonds that are reopenings of previously issued securities with predetermined coupons, successful bidders will pay a price that reflects the yield-to-maturity that clears the auction volume, plus any accrued interest. Interest payments are made semi-annually.”
Furthermore, the DMO highlighted the bonds’ eligibility for various investment and tax benefits: “These Federal Government Bonds qualify as permissible investments under the Trustee Investment Act. They are recognized as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), offering tax exemptions for pension funds and other investors.”
Additionally, the bonds are listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange. They also count as liquid assets for banks when calculating liquidity ratios.