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The Debt Management Office (DMO) has announced the reopening of two tranches of Federal Government of Nigeria (FGN) bonds, offering a total value of N350 billion for public subscription. Each bond unit will be priced at N1,000, with the auction scheduled for April 28 and settlement set for April 30.
According to the DMO’s statement released on April 23, the bond issuance includes:
- A N200 billion 5-year bond, maturing in April 2029, with an annual interest rate of 19.30%
- A N150 billion 9-year bond, maturing in May 2033, offering an annual interest rate of 19.89%
The minimum subscription is N50,001,000, with subsequent bids accepted in multiples of N1,000. As these are reopened issues, coupon rates remain fixed, and successful bidders will pay the yield-to-maturity clearing rate plus any accrued interest.
Interest payments will be made semi-annually, while the principal will be repaid in full at maturity. The DMO emphasized that these bonds are classified as government securities under the Trustee Investment Act and are eligible for tax exemptions under the Company Income Tax Act (CITA) and Personal Income Tax Act (PIA), making them particularly attractive for pension funds and institutional investors.
The bonds are listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange and qualify as liquid assets for banks’ liquidity ratio requirements. They are fully backed by the credit of the Federal Government and secured by the country’s general assets.
