The Federal Government of Nigeria (FGN) has expanded its bond listings on the Nigerian Exchange Limited (NGX) by adding over 900 million units. This move is part of efforts to deepen the domestic capital market, attract investors, and diversify funding sources.
On March 10, 2025, the NGX officially listed additional units of existing FGN bonds. Among the newly listed securities, the 19.30% FGN APR 2029 bond received an additional 305.36 million units, raising the total from 463.16 million to 768.52 million units. Similarly, the 18.50% FGN FEB 2031 bond saw an addition of 605.03 million units, bringing the total outstanding units to 2.71 billion from 2.11 billion. These listings aim to provide investors with more opportunities while enhancing liquidity in the financial market.
This development comes after Nigeria successfully raised $900 million through its first domestic dollar bond issuance six months earlier. The five-year bond, carrying a 9.75% coupon rate, saw a subscription rate of 180%, reflecting strong investor confidence in the country’s economic stability. Furthermore, the NGX recorded about N12.17 trillion in total listings in 2024, driven largely by FGN bonds and corporate issuances aimed at business expansion.
The expansion of bond listings holds significant implications for investors and the Nigerian economy. With more government-backed securities available, investors can diversify their portfolios while enjoying stable returns.
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The increased volume of bonds is also expected to improve market liquidity, making it easier for buyers and sellers to trade. Additionally, the funds generated through bond sales will likely be directed toward key sectors such as infrastructure, healthcare, and education, contributing to national development.
