The Federal Government has announced the offering of three Federal Government of Nigeria (FGN) bonds for subscription, with a combined value of N450 billion.

This was disclosed in the January 2025 FGN Bond Auction Results issued by the DMO yesterday.

The first bond on offer is a N100 billion April 2029 FGN bond, with a 19.30 per cent annual interest rate, marking a five-year re-opening of the bond. The second offer is a seven-year re-opening of a February 2031 FGN bond, valued at N150 billion, with an interest rate of 18.50 percent per annum.

The third offer is a ten-year re-opening of a January 2035 FGN bond, valued at N200 billion. The auction for these bonds will take place on January 27, with a settlement date of January 29.

The bonds are offered at a price of N1,000 per unit, with a minimum subscription of N50 million, and in multiples of N1,000 thereafter.

The DMO clarified that for re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the auction volume, in addition to any accrued interest.

Interest on the bonds is payable semi-annually, with the principal sum set for bullet repayment upon maturity. These bonds are fully backed by the Federal Government, charged upon the general assets of Nigeria.

They qualify as securities in which trustees can invest under the Trustee Investment Act and are also government securities within the Company Income Tax Act and the Personal Income Tax Act, making them eligible for tax exemption for pension funds and other related entities.

Furthermore, the bonds are listed on the Nigeria Exchange Limited and qualify as liquid assets for the purpose of liquidity ratio calculations for banks.

The DMO’s offering confirms the government’s determination to raising funds for key national projects and the N13 trillion 2025 budget deficit financing while providing attractive investment opportunities for both domestic and international investors.