According to a circular issued by the DMO, subscription to the bond opens on September 1, 2025, and closes on September 5, 2025, with a settlement date set for September 10, 2025.

The offer consists of two bonds: a 2-year FGN Savings Bond due in September 2027 at a coupon rate of 15.541% per annum, and a 3-year FGN Savings Bond due September 10, 2028, at a coupon rate of 16.541% per annum.

The bonds are available at ₦1,000 per unit, subject to a minimum subscription of ₦5,000 and in multiples of ₦1,000 thereafter, up to a maximum subscription of ₦50,000,000.

Interest is payable quarterly, with coupon payment dates scheduled for December 10, March 10, June 10, and September 10. Full principal repayment will be made on the maturity date.

Federal Government bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of the country, thereby providing security of funds to investors.

The DMO urged interested investors to contact the authorised stockbroking firms appointed as distribution agents.

The bond qualifies as a security in which trustees can invest under the Trustee Investment Act. It also qualifies as Government securities within the meaning of the Companies Income Tax Act and Personal Income Tax Act for tax exemption for Pension Funds and other investors.

In addition, it is listed on the Nigerian Exchange Limited and qualifies as a liquid asset for banks in meeting liquidity ratio requirements.

According to the DMO, the offer includes two bond options: a 2-Year FGN Savings Bond at 14.401% per annum, maturing on August 13, 2027, and a 3-Year FGN Savings Bond at 15.401% per annum, maturing on August 13, 2028.

Subscriptions open on Monday, August 4, 2025, and close on August 8, 2025. The settlement date is August 13, 2025.

Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and in multiples of N1,000 thereafter, up to a maximum of N50 million.

Interest payments will be made quarterly, and full repayment will be effected on the respective maturity dates.

The DMO has advised interested investors to contact any of its authorised stockbroking firms, who serve as distribution agents, to complete their subscription.

The savings bond is open to all investors, including those with limited capital. With a low entry point of just N5,000, the bond aims to encourage wider participation among Nigerians.

It also offers a secure investment option, being backed by the full faith and credit of the Federal Government of Nigeria.

As revealed in a circular released on Thursday, the auction is scheduled for May 26, 2025, with the settlement date slated for May 28, 2025.

The offering consists of two categories of reopened bonds: a N100 billion reopening of the 19.30% Federal Government of Nigeria (FGN) bond set to mature in April 2029, with a five-year tenor.

The second is a N200 billion reopening of the 19.89% FGN bond maturing in May 2033, offering a nine-year tenor.

The bonds are priced at the rate of N1,000 per unit, subject to a minimum subscription of N50,001,000. Subsequent purchases must be made in multiples of N1,000. Interest will be paid semi-annually.

As reopened issues, the coupon rates, 19.30% and 19.89%, have already been set. Successful bidders will pay a price based on the yield-to-maturity that clears the auction, including any accrued interest.

The bonds are backed by the full faith and credit of the Federal Government of Nigeria, providing security of funds to investors.

The DMO also confirmed that the bonds are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, encouraging interested investors to contact authorised Primary Dealer Market Makers (PDMMs) for participation.

As revealed in a public notice on the DMO website, the sukuk, issued on behalf of the Federal Government of Nigeria, forms part of the government’s broader infrastructure financing strategy.

The bonds have a seven-year tenor, a rental rate of 19.75% per annum, and are due to mature in May 2032.

The subscription period opens on May 12, 2025, and closes on May 20, 2025, with the settlement date set for May 23, 2025.

The minimum subscription is N10,000, in multiples of N1,000 per unit, and subsequent purchases are also available in multiples of N1,000, allowing a wide range of investors to participate and promoting financial inclusion.

During an investor meeting on the “FGN N300 Billion Series VII Sovereign Sukuk Issuance,” Patience Oniha, director-general of the DMO, reassured investors about the stability of Nigeria’s debt structure. She stated:

“There’s more transparency now. FX supply has improved, and the rates have become more stable. Some of the measures were difficult at first, but the benefits are beginning to show.

“Over 60 percent of our external debt comes from multilaterals and bilaterals, which offer more favorable terms than commercial debt. This diversification reduces our exposure to market shocks and provides stability.”

DMO listed Greenwich Merchant Bank Limited, Vetiva Capital Management Limited, and Stanbic IBTC Capital Limited as issuing houses for the bond and advised interested investors to contact them.

The N300 billion, seven-year Ijarah Sukuk bond is part of the federal government’s strategy to fund critical roads and enhance infrastructure development across Nigeria’s six geopolitical zones.

Funds raised from the Sukuk will be used exclusively for the rehabilitation of key road projects and bridges, with the invested funds backed by the full credit of the Federal Government of Nigeria.

Patience Oniha, the director-general of the Nigeria Debt Management Office (DMO), revealed this development at the Nigeria Investor Forum held on the sidelines of the International Monetary Fund and World Bank Spring Meetings in Washington DC.

The decision to rejoin the JPMorgan Index is part of Nigeria’s efforts to restore trust with international investors, while demonstrating its commitment to economic reforms and transparency.

Oniha emphasized that Nigeria now meets the eligibility criteria for inclusion, stating, “With the recent reforms in the foreign exchange market, we believe Nigeria meets the criteria to rejoin the index.”

Oniha, along with Olayemi Cardoso, the Central Bank of Nigeria Governor, highlighted the naira’s stability and rising investor confidence.

This optimism is supported by Fitch’s recent upgrade of Nigeria’s long-term foreign-currency rating to ‘B’ from ‘B-‘, signalling renewed investor confidence.

Nigeria was initially included in the JPMorgan Index in 2012. However, it was placed on a negative watchlist before being officially removed in 2015 due to concerns over transparency and liquidity issues.

The JPMorgan GBI-EM is a key benchmark used by investors to track the performance of local currency-denominated government bonds in emerging markets.

It includes only countries that are accessible to most international investors, and inclusion in the GBI-EM is crucial for emerging markets, as it boosts foreign investment and enhances access to capital markets.

It is a defining factor that separates industry leaders from the rest. For Stanbic IBTC Stockbrokers, a subsidiary of Stanbic IBTC Holdings PLC, this competence has once again been recognised and rewarded, as the Debt Management Office (DMO) of Nigeria has reappointed the firm as the Government Stockbroker to the Federal Government of Nigeria.

This prestigious reappointment underscores the firm’s unwavering commitment to excellence; consistency in delivering superior service; and profound expertise in the capital market.

It is not merely a renewal of status but a strong vote of confidence in Stanbic IBTC Stockbrokers’ capacity to support the Federal Government in the retail segment of the domestic debt market.

The reappointment also highlights Stanbic IBTC Stockbrokers’ alignment with Nigeria’s broader economic agenda.

The firm’s role is crucial in facilitating access to capital, helping the government raise funds to finance infrastructure projects, and contributing to national development.

Stanbic IBTC Stockbrokers has built a legacy of trust, demonstrating robust performance in both equity and fixed-income markets.

With a market-leading position and a reputation for executing complex transactions seamlessly, the firm has consistently provided liquidity, transparency, and stability to Nigeria’s capital market.

Beyond its core mandate, Stanbic IBTC Stockbrokers has contributed significantly to market development initiatives.

The firm actively supports financial literacy, promotes retail investor participation, and engages in initiatives that enhance market depth and sophistication.

As the Government Stockbroker, the firm will continue to play a critical role in ensuring smooth debt issuances, market operations, enhancing market liquidity, and supporting the DMO’s strategic objectives.

This role is critical for maintaining investor confidence and ensuring effective monetary policy implementation through seamless bond auctions and sales.

The firm’s team of seasoned professionals brings a wealth of experience, leveraging deep market insights and strong analytical capabilities to deliver exceptional outcomes.

Bunmi Olarinoye, chief executive, Stanbic IBTC Stockbrokers, expressed her delight over the reappointment, stating:

“We are honoured by this recognition and reappointment by the DMO. With this appointment, we are reassured of the confidence placed in our competence, integrity, and dedication to supporting Nigeria’s financial markets. As the Government Stockbroker, we remain committed to delivering excellence and contributing to the growth of our economy.”

With this reappointment, Stanbic IBTC Stockbrokers reaffirms its leadership position in the capital market. The firm is well-positioned to continue driving market development, enhancing transparency, and facilitating efficient capital flows within the economy.

As Nigeria continues to navigate complex economic dynamics, the competence and expertise of institutions like Stanbic IBTC Stockbrokers will play a pivotal role in building a resilient and vibrant financial market that supports sustainable economic growth.

Debt Management Office (DMO) in a circular issued on Wednesday stated that the offerings consisted of N1.25tn with a maturity date of February 2031 and N1.25tn with a 10-year tenor.

FGN savings bonds are part of the domestic borrowing plan of the Federal Government.

Last year, the Federal Government raised about N7.06tn from the fixed income market.

This year, the Federal Government has projected its new borrowings to hit N7.83tn.

President Bola Tinubu had sought approval from the National Assembly for about $8.69bn and €100m as part of the external borrowing plan for 2022 to 2024.

The latest FG bonds have a face value N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000.

Interest payments on FGN bonds are usually semi-annually.

In January, the FG had offered a two-year FGN Savings bond due January 17, 2026 at 11.033 per cent per annum and another three-year FGN Savings Bond due January 17, 2027 at 12.033 per cent per annum.

It allotted N603.42bn for the two-year tenor bond and N1.394tn for the three-year bond.(Punch)

The approvals were made under the State Fiscal Transparency, Accountability and Sustainability (SFTAS) project, which was initiated in 2018.

The SFTAS project was designed to strengthen transparency and accountability at the sub-national level and ended in 2022.

However, the implementation of the projects is still ongoing according to a document obtained from the bank.

According to this report, a total of $1.5bn was committed to the project in two batches of $750m (December 2018 and December 2020) by the World Bank.

Although the money is a grant to state governments, it is a loan to the Federal Government. A copy of the procurement plan for the project covering a period from February 2019 to August 2020.

The procurement plan is in line with the World Bank’s Procurement Guidelines which establish the arrangements to be made for procuring the goods and works (including related services) required for a project.

According to the procurement plan for the SFTAS project for the period disclosed by the World Bank, the Home Finance Department received $25,713 to acquire office stationery and supplies.

It also got another $39,357, up from the N33,000 initially requested for additional office equipment and supplies for the SFTAS Programme Coordinating Unit.

For the furniture items, the department got $64,190 for furnishing and equipping SFTAS Public Service Institute space; $14,842 for additional office furniture and partitioning of the STFAS office, as well as $19,368 up from $17,250 for additional office equipment and furniture for the Debt Management Office.

The department also received $24,038 for the procurement of video conferencing equipment for the SFTAS PCU and MiFi modems for the DMO.

This rise follows a marginal increase from the N87.38 trillion it was in the second quarter.

The Debt Management Office (DMO) disclosed this in its third quarter 2023 public debt report published Wednesday.

The office also informed that the total external debt stock declined by $1.57 billion during the period from $43.16 billion to $41.59 billion.

The drop, though, could not make up for the rise in the domestic component of the sovereign debts.

DMO, in the statement, said the reason for the decline is due to the redemption of Nigeria’s $500 million Eurobonds and the first principal payment of $413.859 million from the International Monetary Fund’s (IMF) $3.4 billion loan obtained during the COVID-19 period.

A statement by DMO said: “External debt decreased due to redemption of $500 million Eurobond and the payment of $413.859 as first principal repayment of the $4.3 billion obtained from the International Monetary Fund (IMF) in 2020 during COVID-19.”

It, however, noted that Nigeria’s total public debt increased marginally from N87.38 trillion at the end of the second quarter to N87.91 trillion ($114.35 billion) as of September 30, 2023, following the increase in domestic debt stock of the country, which went up by N1.8 trillion to N50.196 trillion in the three months.

“The amount represents the domestic and external debts of the Federal Government of Nigeria, the 36 state governments and the Federal Capital Territory,” DMO said.

It added: “The servicing of these debts in addition to other debts are clear demonstrations of the FGN’s commitment to honouring its debt obligations.”

Nigerians have continued to raise eyebrows over the spate of borrowings by the federal government which has led to the astronomical rise in the debt profile.

Although the government has always argued that the country does not have a debt problem as its debt to GDP is still within the limit. It, however, admits it has a revenue challenge.

In the 2024 budget proposal before the National Assembly, the federal government plans to borrow N7.83 trillion as part of measures to bridge the budget deficit of N9.18 trillion. The government said it is looking to reduce its dependence on debts and raise revenue. (Guardian).

Issued in July 2013 with a tenor of 10 years and an annual coupon rate of 6.375 percent, the Eurobond forms part of a dual-tranche USD 1 billion Eurobond, according to a statement published on the DMO’s website.

The DMO emphasized Nigeria’s commitment to meeting its debt service obligations, reaffirming the country’s dedication to honoring its financial responsibilities.

The statement from the DMO further underscored Nigeria’s strong debt management operations and planning, citing the successful redemption of Eurobonds and a diaspora bond over the past six years. This track record serves as a testament to Nigeria’s credibility and ability to manage its debt effectively.

The recent redemption of the $500 million Eurobond follows Nigeria’s prior redemptions, including a $500 million Eurobond in July 2018, another $500 million Eurobond in January 2021, and a $300 million diaspora bond in June 2022.

These redemptions, in addition to the latest Eurobond, bring the total amount of securities redeemed by Nigeria in the international capital market to $1.8 billion.

However, concerns have arisen regarding the Federal Government’s low revenue generation. The reliance on oil as the primary revenue source has proven challenging due to factors such as reduced production and the recent removal of subsidies.

As Nigeria redeems its Eurobond and grapples with revenue generation challenges, the country’s commitment to meeting its debt obligations and implementing sound debt management practices remains at the forefront of its financial operations.