Nigeria Targets ?450 Billion In January Bond Auction To Bridge Fiscal Gap

The Nigerian government through the Debt Management Office DMO, has announced plans to raise ?450 billion in its first bond auction of 2025. This marks a significant increase compared to the ?360 billion offered in January 2024 and the ?120 billion raised in December 2024.

The bond issuance aims to bridge the nation's fiscal deficit, meet financial obligations, and provide investment opportunities for both institutional and retail investors.

The January 2025 bond auction features a mix of reopened and newly issued bonds designed to cater to a range of investor preferences. It includes a five-year bond originally issued in April 2029. It carries a 19.30 coupon rate, with a target of ?100 billion the seven-year bond which offers an 18.50 coupon rate and seeks to raise ?150 billion and the ten-year bond, A new issuance called the FGN January 2035 bond, targeting ?200 billion.

The auction is scheduled for January 27, 2025, with a settlement date of January 29, 2025, ensuring timely transfer of ownership and commencement of interest payments for successful bidders.

The bonds offer several benefits, including being available in units of ?1,000, with a minimum subscription requirement of ?50,001,000. Subscriptions can increase in increments of ?1,000. There are also semi-annual interest payments where investors will receive consistent income twice a year.