The Federal Government of Nigeria plans to raise between ₦900 billion and ₦1.2 trillion from the domestic bond market in the second quarter of 2025. This is a significant drop from the ₦1.8 trillion targeted in Q1, as authorities adopt a more cautious debt strategy amid mounting fiscal challenges.
The Debt Management Office (DMO) released this updated target in its FGN Bond Issuance Calendar for Q2 2025.
Nigeria’s fiscal environment remains under pressure, with inflation reaching 24.23% in March 2025 and the Central Bank of Nigeria maintaining a high interest rate of 27.5%.
Weak oil revenues and a record ₦13.08 trillion budget deficit, equal to 3.87% of the GDP, further complicate economic planning. In response, the DMO appears to be scaling back borrowing volumes while still ensuring liquidity and investment opportunities for institutions.
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Three bond auctions are scheduled for April 28, May 26, and June 23. Each will offer two instruments, combining reopened bonds with new issues.
April and May will feature the reissuance of the 19.30% FGN APR 2029 and the 19.89% FGN MAY 2033. By June, the DMO will introduce two new instruments: the FGN JAN 2030 (5-year tenor) and FGN JAN 2032 (7-year tenor). Coupon rates for these new bonds have not yet been disclosed, though they are expected to align with the prevailing market yields in the 19–20% range.
For April, the government plans to raise ₦350 billion: ₦200 billion from the APR 2029 bond and ₦150 billion from the MAY 2033 bond. The minimum subscription is ₦50,001,000 per bond, with units priced at ₦1,000. Interest will be paid semi-annually, and the bonds qualify as trustee-investment grade, are tax-exempt for institutional investors, and count as liquid assets for banks.
