Federal Government Targets N2.5tn in Second FGN Bonds Auction of 2024

In its second Federal Government of Nigeria (FGN) bonds auction of 2024, the Federal Government aims to raise N2.5 trillion.

The Debt Management Office (DMO) announced this in a circular released on Wednesday.

The auction consists of two tranches: N1.25 trillion with a maturity date of February 2031 and another N1.25 trillion with a 10-year tenor.

FGN bonds are integral to the domestic borrowing strategy of the Federal Government, forming a significant part of its fiscal policy.

Last year, the government raised approximately N7.06 trillion from the fixed-income market, indicating a reliance on debt instruments to finance budgetary requirements.

The government’s borrowing plan for 2024 forecasts new borrowings to hit N7.83 trillion, reflecting ongoing fiscal challenges and the need for capital injection into critical sectors.

President Bola Tinubu previously sought National Assembly approval for external borrowings totaling about $8.69 billion and €100 million for the period spanning 2022 to 2024.

The latest FGN bonds have a face value of N1,000, and their interest payments are typically semi-annual.

The auction underscores Nigeria’s ongoing efforts to manage its fiscal obligations while addressing the nation’s developmental needs amidst evolving economic conditions and debt dynamics.