Bonds Yield Steady as DMO Opens Sukuk Offer
Nigerian government bond yields steadied in the secondary market as the Debt Management Office (DMO) opened 7-year Sukuk worth N300 billion for subscription at 19.75%.
The local bond market opened the week with subdued activity, though limited trading emerged in select tenors—particularly the Feb 2031s, May 2033s, and Jun 2053s.
Across the benchmark curve, the average yield contracted at the short (-1bp) end, driven by buying interest in the JAN-2026 (-9 bps) bond, but closed flat at the mid and long segments.
Despite the quiet session, the benchmark mid-yield closed steady at an average of 18.38%. In other news, the DMO has opened subscriptions for a ₦300 billion 7-year Ijarah Sukuk at a 19.75% rental rate.
The offer period runs from today through May 20 at about a 20% spot rate, which makes the Islamic finance-linked instrument attractive versus local bonds, which attracted 19% at the latest auction sales.
Since its introduction in September 2017, the Sovereign Sukuk has proven to be a trusted, impactful, and rewarding investment avenue. The initiative supports the development of critical national infrastructure, promotes financial inclusion, and contributes to the growth of Nigeria’s domestic capital market.
This latest issuance follows the same successful framework—proceeds will be deployed toward the rehabilitation and construction of strategic road and bridge projects across the country, in line with the federal government’s infrastructure agenda. #Bonds Yield Steady as DMO Opens Sukuk Offer FG, World Bank launch $500m irrigation, power project
