NIGERIA RAISES N748.6BN THROUGH FGN BONDS AS BORROWING COSTS DECLINE

The Federal Government has raised N748.6 billion through its latest Federal Government of Nigeria bond auction as yields on the debt instruments continued to moderate. The amount raised was significantly above the government’s initial offer of N450 billion, reflecting strong demand from investors for the securities.

The Debt Management Office offered three separate instruments with maturities of five, seven and nine years at the auction. Investors submitted total subscription bids of about N1.39 trillion, indicating demand of more than three times the amount initially put up for sale by the government.

The five-year bond, maturing in 2031, attracted N366.55 billion in subscriptions, while N258.85 billion was allotted to investors. The seven-year instrument, due in 2033, recorded N471.91 billion in subscriptions, with N221.32 billion eventually allotted.

The nine-year bond, which matures in 2035, received the highest subscription of N551.73 billion. The DMO allotted N268.42 billion from the instrument, bringing the total amount raised across the three securities to N748.59 billion. The marginal rates on the bonds stood at 16.49 per cent, 17.00 per cent and 17.35 per cent respectively.

The latest auction comes amid a gradual decline in yields in Nigeria’s fixed-income market, as investors respond to changing monetary and liquidity conditions. The strong subscription also indicates continued appetite for government securities, while the lower rates suggest borrowing costs have eased compared with previous auctions.