DMO Announces New FGN Bond Auction Worth ₦460 Billion for November 2025
The Debt Management Office (DMO) has unveiled a fresh DMO FGN Bond Auction, offering two reopened Federal Government Bonds worth a combined ₦460 billion. The offer, scheduled for November 24, 2025, comes as part of Nigeria’s strategy to deepen domestic borrowing, boost liquidity in the bond market, and support long-term budget financing through secure investment instruments.
According to an official circular released on Tuesday, the auction will open for bids on the following re-issued bonds:
- ₦230 billion – 17.945% FGN AUG 2030 (5-Year Re-Opening)
- ₦230 billion – 17.95% FGN JUNE 2032 (7-Year Re-Opening)
Settlement for successful bidders is expected on November 26, 2025, the DMO confirmed.
Flexible Pricing Structure & Semi-Annual Interest Payments
Each bond is offered at ₦1,000 per unit, with a minimum subscription of ₦50,001,000 and subsequent increments in multiples of ₦1,000.
Since these are re-openings and not fresh issues, investors will not bid for new coupon rates. Instead, pricing will be determined purely by market forces—based on yield-to-maturity bids that clear the auction’s final volume. Buyers will also pay any accrued interest accumulated on the bonds since their last issuance.
Both bonds provide semi-annual interest payments, ensuring predictable cash flow—an appealing feature for pension funds, institutional investors, insurance companies, and asset managers looking for stable medium- to long-term returns.
The Federal Government will redeem each bond at full principal value (bullet repayment) at maturity.
What Investors Should Know About FGN Bonds
The instruments offered in the latest DMO FGN Bond Auction come with several legal, tax, and financial advantages. They:
Carry Full Sovereign Guarantee
Backed by the full faith and credit of the Federal Government, making them among the safest investments in Nigeria.
Qualify as Trustee Investments
Recognized under the Trustee Investment Act, making them suitable for secure institutional portfolios.
Are Tax-Friendly
FGN Bonds qualify as government securities under CITA and PITA, granting tax-exempt status to pension funds and other regulated entities.
Are Listed on NGX and FMDQ
This ensures secondary market trading, transparency, and fair price discovery.
Count as Liquid Assets for Banks
Useful for meeting regulatory liquidity ratio requirements.
Why This Auction Matters Now
The November 2025 bond auction reflects Nigeria’s reliance on domestic debt issuance amid:
- Rising global interest rates
- High external borrowing costs
- Ongoing exchange rate instability
- Increased budget financing needs
By focusing on locally issued bonds, the government aims to:
- Reduce foreign debt exposure
- Strengthen the domestic financial markets
- Support refinancing obligations
- Improve long-term economic planning
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