The Federal Government of Nigeria is set to raise N350 billion in its April 2025 bond auction, following a total borrowing of N1.94 trillion in the first quarter. This move is part of efforts to finance the projected N13 trillion fiscal deficit for the year and invest in critical infrastructure amid ongoing global economic uncertainty.
The Debt Management Office (DMO) made the announcement via its official X handle on Wednesday. The auction is scheduled for April 28, 2025, with settlement slated for April 30, 2025, ensuring prompt investor engagement and interest accrual.
The offer includes two bond categories:
A five-year bond with a 19.30% coupon rate, targeting N200 billion
A nine-year bond with a 19.89% coupon rate, targeting N150 billion
These instruments form a key part of the government’s domestic borrowing strategy, designed to provide safe investment options for both institutional and individual investors.
The bonds are available in units of N1,000, with subscriptions allowed in increments of N1,000. Investors will receive semi-annual interest payments, and principal will be repaid in full upon maturity.
Importantly, the bonds benefit from tax exemptions under the Company Income Tax Act and the Personal Income Tax Act, making them especially attractive to pension funds and tax-exempt investors.
Listed on both the Nigerian Exchange Limited (NGX) and FMDQ OTC Securities Exchange, the bonds are easily accessible and tradable, offering liquidity and stability.
This auction underscores the government’s commitment to leveraging the domestic debt market for national development while ensuring investor confidence through regulated, tax-efficient instruments.
