"N5,000 Minimum Investment": FG Offers Nigerians N80 Billion in July Bond Auction
- The Federal Government of Nigeria is offering N80 billion in bonds for auction on July 28, 2025, with settlement on July 30
- The offer includes two reopened bonds: N20 billion for a five-year bond maturing in 2029 and N60 billion for a seven-year bond maturing in 2032
- In the previous auction, investor interest was high, especially for the seven-year bond, which received over N561 billion in bids
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
The Federal Government of Nigeria has announced the sale of N80 billion worth of bonds through a public auction scheduled for July 28, 2025, with settlement to follow on July 30.
This was disclosed by the Debt Management Office (DMO) in a statement released on Wednesday.
Recall that a few weeks ago, the FG introduced the July 2025 Federal Government of Nigeria (FGN) savings bonds, offering attractive interest rates of up to 16.762% per year.
Source: UGC
July bonds auction now available
The latest bond issuance aligns with provisions of the DMO Establishment Act of 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17 of the Laws of the Federation, 2004.
The offer consists of two reopened Federal Government bonds: N20 billion for the 19.30% FGN bond maturing in April 2029 (a five-year term), and N60 billion for the 17.95% FGN bond due in June 2032 (a seven-year tenor).
Each bond is valued at N1,000, with a minimum investment of N5,000 and further purchases in N1,000 increments, up to a maximum of N50 million.
As reopened instruments, the interest rates will be based on the yield-to-maturity of successful bids from the auction. Interest will be paid semi-annually, and the full principal will be repaid at the end of the bond’s term.
The upcoming offer is slightly smaller than the N100 billion auctioned in June.
During that previous round, the five-year 19.30% bond maturing in April 2029 received 30 bids totalling N41.69 billion, though only two bids were successful, with just N1.05 billion allotted.
The seven-year 17.95% bond maturing in June 2032 attracted far more attention, with 209 bids submitted and subscriptions worth N561.17 billion. Ultimately, 41 bids were successful, resulting in an allotment of N98.95 billion.
Over the years, FGN Bonds have become an increasingly attractive option for Nigerians looking for secure and consistent returns, particularly as inflation and unstable interest rates continue to affect conventional savings methods.
Source: Facebook
Nigeria’s dollar bond among worst-performers
Meanwhile, Nigeria’s dollar-denominated bonds have recently ranked among the lowest performers in emerging markets, with the country’s sovereign risk premium hitting its highest level in eight months.
Concerns are growing among investors about a potential repeat of economic troubles, particularly due to the hardships linked to President Bola Tinubu’s policy decisions.
Analysts at Citigroup, Alexander Rozhetskin and Luis Costa, attribute the weak bond performance to political uncertainty and difficulties surrounding the country’s reform agenda.
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Source: Legit.ng
