Nigeria to Open N300 Billion Bonds for Subscriptions
Nigerian government has revealed plan to open its monthly bonds auction worth N300 billion for investors subscription on Monday, according to an offer circular released by the Debt Management Office.
The Debt Management Office (DMO) announced the March 2025 auction, replacing the February 2031 paper with the May 2033 paper and offering ₦200 billion on the April 2029 paper and ₦100 billion on the May 2033 paper.
As scheduled, the DMO will raise N300.0 billion for the Federal Government, as part of a broader initiative to secure up to N1.8 trillion in the first quarter of 2025.
This effort aims to bridge the fiscal deficit while providing attractive investment opportunities for both institutional and retail investors, Afrinvest Limited told investors in a note.
Details from the auction circular revealed there will be two offers for subscription: a five years savings bonds yielding 19.3% per annum, maturing in April 2029 and a nine years savings bonds yielding 19.9% per annum maturing in May 2033.
Last week, the Nigerian government bond secondary market experienced bearish sentiments, with investors exiting positions on the MAR-2025 bond ahead of its maturity on March 23.
The local bonds market was bearish throughout the week, with offers concentrated around mid-tenor papers, particularly the February 2031, May 2033, and February 2034 maturities. Market activity was subdued as investors adopted a cautious stance ahead of next week’s FGN bond auction.
Traders said across the benchmark curve, the average yield increased at the short (+71bps), mid (+20bps), and long (+4bps) segments. The contraction in yields was attributed to selloffs of the MAR-2025 (+344bps), JUN-2033 (+32bps), and JAN-2042 (+24bps) bonds, respectively.
Selling pressure persisted on mid-to-long tenors, but limited demand resulted in wider bid/ask spreads. Overall, the average yield increased by 28bps to 18.80%. #Nigeria to Open N300 Billion Bonds for Subscriptions#
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