Federal Government allots ₦29.35b in March bonds auction

The Federal Government Of Nigeria has allotted N29.35 billion worth of bonds to 12 successful bidders in its March auction, the Debt Management Office (DMO) says.

According to the auction results obtained from its website, the DMO said that three bonds in tenures of five, seven and 10 years were offered at the auction.

The Federal Government had initially offered N100 billion to investors.

The result also said that allotments were made to the successful bidders at 12.75 percent for the five-year, 13.53 percent for the seven-year and 13.58 percent for the 10-year bond.

Giving a full breakdown, it stated that for the five-year bond, N40 billion was offered, N21.62 billion was subscribed for, while N3.80 billion was allotted.

It also said that for the seven-year paper, N40 billion was offered, N26.17 billion was subscribed for, but N5.55 billion was allotted.

For the 10-year paper which investors showed strong preference for, N20 billion was offered, while N100.68 billion was subscribed for, but N20 billion was allotted.

The result stated that “in addition, N36 billion of the 12.75 percent April 2023 and N56.60 billion of the 13.53 percent March 2025 were allotted on non-competitive basis.”

In another development, the Federal Government made N240.88 million from sales of savings bond in March.

The result of the sales was also published on the DMO’s website.

It showed that N62.58 million was allotted to 142 subscribers for a two-year term at 11.62 percent and N178.30 million to 244 subscribers for a three-year tenor at 12.62 percent.

Savings bond issuance is expected to help finance the nation’s budget deficit.

Also, Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

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