The Debt Management Office (DMO) has announced that it raised a total of ₦136.16bn from the Federal Government of Nigeria (FGN) bond auction held in August 2025, reflecting sustained investor confidence despite a tighter yield environment.
According to a circular released on Tuesday, the auction featured two instruments — the 17.945 per cent FGN AUG 2030 (a new 5-year bond) and the 17.95 per cent FGN JUN 2032 (a re-opening of the 7-year bond) — each offered at ₦100bn.
The 5-year tenor attracted 70 bids valued at ₦102.36bn, with allotments of ₦46.01bn at a marginal rate of 17.945 per cent.
Investors submitted bid rates ranging from 12.50 per cent to 21.50 per cent.
In comparison, the 7-year paper saw stronger demand, recording 111 bids worth ₦165.81bn. The DMO allotted ₦90.16bn at a marginal rate of 18 per cent, with bid rates between 15 per cent and 22 per cent.
In total, subscriptions stood at ₦268.17bn, nearly double the amount offered, underscoring healthy appetite for sovereign debt instruments amid ongoing market uncertainties.
The August auction, however, marked a moderation from the previous month when the DMO raised ₦185.93bn from two reopened FGN bonds — the 19.30 per cent APR 2029 and the 17.95 per cent JUN 2032 issues.
In July, the APR 2029 bond attracted ₦39.08bn in subscriptions, with ₦13.43bn allotted at a marginal rate of 15.69 per cent, while the JUN 2032 issue drew ₦261.60bn in subscriptions, of which ₦172.50bn was allotted at 15.90 per cent.
By comparison, while the July allotment exceeded the initial offer size, August’s outcome reflected a more measured issuance strategy despite significant oversubscription.
Market analysts noted that investor demand continues to be driven by attractive coupon levels and Nigeria’s need to fund fiscal obligations, even as the government balances its borrowing programme with the cost of debt servicing.
SOURCE: thewhistler.ng
