In a move aimed at deepening domestic investment and broadening retail participation in sovereign debt instruments, Nigeria’s Debt Management Office (DMO) has announced the reopening of two Federal Government bonds worth a combined ₦350 billion. The offer provides retail and institutional investors alike with a structured, secure opportunity to earn high, guaranteed returns on capital.
The two tranches ₦200 billion and ₦150 billion respectively will be auctioned on April 28, 2025, with settlement scheduled for April 30. The bonds are being offered in units of ₦1,000, with a minimum subscription threshold of ₦50,001,000 and subsequent increments in multiples of ₦1,000. The interest rates on offer reflect the current monetary landscape: 19.30% per annum for the five-year bond due in April 2029, and 19.89% per annum for the nine-year bond maturing in May 2033.
Both offerings represent re-openings of previously issued bonds, meaning the coupon rates have already been established. Investors who successfully bid will acquire the bonds at yields determined by the auction clearing rate, and will also be required to pay accrued interest up to the point of settlement.
The appeal of these instruments extends beyond their attractive yields. Interest payments will be disbursed semi-annually, and principal repayments will occur via a single bullet payment at maturity. As government-backed securities, the bonds carry the full faith and credit of the Federal Republic of Nigeria, offering a high degree of safety and stability in an otherwise volatile economic environment.
For retail investors, particularly those new to government bonds, this offering represents a rare opportunity to earn quarterly income in a risk-controlled manner. The DMO has emphasized that these savings bonds are eligible under the Trustee Investment Act and are also tax-exempt under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), particularly for pension funds and similar investors.
Listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange, the bonds are also classified as liquid assets and count toward liquidity ratio requirements for financial institutions adding an extra layer of appeal for banks and fund managers.
The DMO has encouraged interested parties to approach Primary Dealer Market Makers (PDMMs) for participation. This latest issuance comes just a month after a similar ₦300 billion bond auction in March, signaling the government’s continued reliance on domestic borrowing to manage fiscal pressures and stimulate investment from within.
With yields hovering near 20% and government backing in place, these bonds may serve not only as an inflation hedge but also as a financial anchor for investors navigating uncertain
