FG gets over N1.26tn subscription through bond auction
• FG raises N576.62bn from auction.
The Federal Government of Nigeria recorded investor desire at its September bond auction as subscriptions crossed N1.26tn, far exceeding the N200bn initially offered.
According to the Debt Management Office, the auction, conducted on September 29, featured two reopenings: the 17.945 per cent FGN August 2030 (five-year bond) and the 17.95 per cent FGN June 2032 (seven-year bond). Both bonds were settled on Wednesday, October 2, 2025.
For the five-year bond maturing in August 2030, the government offered N100bn but received 66 bids worth N231.79bn. Out of these, 26 bids were successful with an allotment of N87.80bn at a marginal rate of 16.00 per cent.
The seven-year bond maturing in June 2032 witnessed even stronger demand, as 270 bids valued at N1.03tn were submitted against the N100bn offered. A total of 91 bids were successful, with N488.83bn allotted at a marginal rate of 16.20 per cent.
Despite the allotments closing at lower marginal rates, the DMO confirmed that the original coupon rates of 17.945 per cent for the August 2030 bond and 17.95 per cent for the June 2032 bond will be maintained.
In all, the government raised N576.62bn from the auction, underscoring robust investor confidence in federal debt securities despite high-interest rate conditions.
The auction results also highlighted a growing preference for longer-dated instruments, with the seven-year bond attracting over four times the subscription level of the five-year note.
Analysts noted that the heavy subscription demonstrates sustained demand from pension funds, banks, and asset managers seeking safe and attractive yields amid volatile equities and currency markets.
