The Federal Government of Nigeria has announced plans to raise between N900 billion and N1.2 trillion through the domestic bond market in the second quarter (Q2) of 2025. This represents a scaled-down approach compared to the N1.8 trillion target set for Q1 2025.
According to the FGN Bond Issuance Calendar for Q2 2025 released by the Debt Management Office (DMO), the government is navigating a complex fiscal environment. Rising inflation, limited oil revenue, and a record N13.08 trillion budget deficit, which accounts for 3.87% of Nigeria’s GDP, have forced a more conservative funding strategy.
As reported by 9am News, the DMO has scheduled three bond auctions for April 28, May 26, and June 23, 2025. Each month will see two bonds offered, with expected monthly raises between N300 billion and N400 billion a blend of re-openings and new issuances.
A Shift from Q1 Strategy
In the first quarter, the DMO had a more aggressive plan, offering three bonds monthly:
- 19.30% FGN APR 2029
- 18.50% FGN FEB 2031
- New FGN JAN 2035 (10-year tenor)
These were issued in tranches of N150–N200 billion each, bringing potential monthly totals to N450–N600 billion. However, in Q2, the DMO is scaling back to two bonds per month, each still within the N150–N200 billion range.
April and May will feature re-openings of the APR 2029 and MAY 2033 bonds. In June, two new instruments will be introduced:
- FGN JAN 2030 (5-year tenor)
- FGN JAN 2032 (7-year tenor)
Though coupon rates for these new bonds haven’t been disclosed, analysts expect yields around 19%–20%, aligning with current market conditions.
The decision to lower the Q2 issuance target appears to reflect a more balanced approach. With headline inflation at 24.23% as of March 2025 and the Central Bank of Nigeria’s policy rate at 27.5%, investor appetite for high-yield government bonds remains strong.
This revised issuance strategy suggests a deliberate effort to absorb liquidity while preventing unnecessary pressure on the financial system. The stable bond structure may also reassure institutional investors who benefited from consistent high-yield offerings during Q1.
Bond Details and Market Relevance
These bonds retain their status as trustee-eligible instruments and are tax-exempt for pension and institutional funds under both CITA and PITA. In addition, they count as liquid assets for banks’ liquidity ratio calculations.
To support transparency and market access, all bonds will be listed on the Nigerian Exchange (NGX) and FMDQ OTC Securities Exchange, enabling active secondary market trading.
