FG Raises First Debt in 2025, Borrowing N669.94 Billion From Nigerians

• The federal government of Nigeria has successfully raised its first domestic debt in 2025, with N670 billion raised from its latest bond auction
• The bond auction was subscribed by over 10%, meaning that the DMO raised more money than it set out to
• This debt is spread across three tenor options, and the government will commence repayment from January 2027

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The federal government of Nigeria has successfully borrowed N669.94 from Nigerians via the recently concluded bond auction.

This is officially the first bond auction in 2025, and the Debt Management Office (DMO) announced the auction's success on its X handle (formerly Twitter).

The bond auction sales were 10% oversubscribed, raising N669.94 billion compared to the N606.46 allotted across three bond tenors.

The post from the DMO read;

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“FGN BOND AUCTION RESULTS (JANUARY 2025). Total amount raised-N669.94bn, Total amount allotted- N606.46bn. Details: 19.30% FGN APR 2029 – allotted N78.86bn at 21.79% 18.50%; FGN FEB 2031 – allotted N159. 29bn at 22.5% 22.60%; FGN JAN 2035 – allotted N368.31bn at 22.6%.”

FG to borrow N450 billion from Nigerians

Recall that the DMO had held a bond auction on Monday, January 27, 2025, for N450 billion worth of FGN bonds.

Announcing the auction on its X handle, the Debt Management Office noted that the offer starts at N50.001million, and could be made through any of the Primary Dealer Market Makers (PDMM) such as First Bank, Access Bank and others.

More FG borrowings through bonds

Earlier in the month, on January 13, 2025, the Debt Management Office listed the first offer on the FGN Bonds. According to that announcement, the bonds were in two groups with different tenors of 17.235% and 18.235%.

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The post read;

“The DMO is offering you your first investment opportunity of the year with the: 2-year FGN Savings Bond at 17.235%; 3-year FGN Savings Bond at 18.235%. Offer opens today and closes Friday, January 17. Contact your stockbroker to invest today!”

The Debt Management Office noted that the monies raised through the bond auctions could fund the 2025 budget deficit and finance major infrastructural projects the government intends to carry out in 2025.

Nigeria’s public debt was recorded to have hit a new high of N142.3 trillion as of September 30, 2024.

Why the bond auction was oversubscribed

While the DMO set out to raise N606 billion, it raised N669.9 billion. This means that the bond was 10% oversubscribed.

In a chat with Legit.ng, a Nigerian market analyst, Olumide Adesina explained that the bond was oversubscribed because of the attractive yields. Adesina noted though that the offer falls within the normal range, given current realities.

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Investors showed more than passing interest in the bonds across all three tenors, and the result was an oversubscription by 10.43%, despite market and economic realities.

FG debts to rise in 2025

In related news, DMO DG said Nigeria's debt profile would rise significantly with the FGN bond offers and other borrowings scheduled in 2025.

Ms Patience Oniha said this while clarifying issues on President Bola Tinubu's inherited debt.

She noted that the numbers out there were inaccurate, as President Tinubu inherited N87 trillion debt, not N21 trillion.

Source: Legit.ng