Debt Management Office Releases Q1, 2022 Calendar

The Debt Management Office (DMO) will, on January 16, 2022 issue N70 billion to N80 billion, four years and 20 years Federal Government of Nigeria (FGN) bond, with an interest rate of 12.50 percent.

In its recently released calendar for the issuance of bonds for the first quarter of 2022 (Q1-2022), the DMO noted that this bond has an original tenor of 10 years and 20 years and will re-open in January 2026 and January 2042.

The DMO also revealed that it will issue three years, 11 months and 19 years, 11 months FGN bond of N70 billion to N80 billion on 16th of February.

This bond, according to the DMO, will carry an interest rate of 12.50 percent, to be re-opened in January 2026 and January 2042, and with original tenor of 10 years and 20 years.

Also on March 23, the DMO will issue three years, 10 months, and 19 years, 10 months, 70 billion to N80 billion FGN bond which would last for a period of 10 years and 2 years.

The bond has an interest rate of 12.50 percent, and will be re-opened in January 2026 and January 2042.

FGN Bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN) issued by the Debt Management Office (DMO) for and on behalf of the Federal Government.

The FGN has an obligation to pay the bondholder the principal and agreed interest as and when due. When you buy FGN Bonds, you are lending to the FGN for a specified period of time.

The FGN Bonds are considered as the safest of all investments in domestic debt market because it is backed by the ‘full faith and credit’ of the Federal Government, and as such it is classified as a risk free debt instrument.

Prior to the establishment of the Debt Management Office (DMO) in 2000, Nigeria’s public debt was managed by a myriad of Government Agencies in an uncoordinated manner.

This diffusion created systemic and structural problems that brought about serious strain on the country’s debt portfolio and economic growth.

Hence, the establishment of the DMO marked the beginning of the institutionalization and professionalization of public debt management in Nigeria.