Debt Office to Open N300bn Bonds for Subscriptions
The Nigerian government, through the Debt Management Office (DMO), has revealed a plan to open N300 billion in local bonds for investors’ subscription. Analysts said the offer will be oversubscribed, reflecting an unending appetite for the naira assets on the back of elevated yields.
Banks and other asset managers have continued to increase bets on local bonds amidst disinflation, while the decision to keep interest rates at double-digit highs is expected to continue to fuel investors’ interest.
In a circular, the DMO announced a ₦300 billion May 2025 bond offering across two maturities. The debt office will open a 19.30% FGN bond maturing in Apr 2029 worth ₦100 billion for investors’ subscription on Monday.
Also, 19.89% local bonds maturing in May 2033, totaling ₦200 billion, will be offered for subscription as part of efforts to finance the 2025 budget. Meanwhile, the local bond market remained quiet with limited activity, as bearish sentiment drove most trading to the Feb 2031s, May 2033s, Jan 2035s, and Jun 2038s tenors.
But yields at the short end of the curve contracted by 12 bps as participants made bids for JAN-2026 (-83 bps) paper. Consequently, the average yield dipped by 5 bps to close at 19.00%.
In the treasury bills segment, trading activity gained modest traction, driven by strong demand for instruments at the mid-segment (-17 bps) of the curve, particularly the Nov-25 (-126 bps). #Debt Office to Open N300bn Bonds for Subscriptions Nigeria’s Banking Sector Stable, CBN Reassures Nigerians
