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Government Raises N669.94bn Through Bond Sales to Support Budget Deficit

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Naira Exchange Rates - Investors King

The Debt Management Office (DMO) has successfully raised N669.94 billion in the January 2025 Federal Government of Nigeria (FGN) bond auction.

Confirming the results, the DMO stated on X (formerly Twitter):

“FGN BOND AUCTION RESULTS (JANUARY 2025) Total amount raised – N669.94bn, Total amount allotted – N606.46bn. Details: 19.30% FGN APR 2029 – allotted N78.86bn at 21.79%, 18.50% FGN FEB 2031 – allotted N159.29bn at 22.5%, 22.60% FGN JAN 2035 – allotted N368.31bn at 22.6%.”

This reinforces the government’s strategy to finance infrastructure projects and support budgetary needs through domestic borrowing.

A breakdown of the bond allotments shows:

  • 19.30% FGN APR 2029: N78.86 billion allotted at a yield of 21.79%
  • 18.50% FGN FEB 2031: N159.29 billion allotted at a yield of 22.50%
  • 22.60% FGN JAN 2035: N368.31 billion allotted at a yield of 22.60%

The strong demand for FGN bonds indicates investor confidence in the government’s debt instruments, even as the domestic fixed-income market adjusts to evolving economic conditions.

Analysts note that the rise in bond yields, particularly the 22.6% rate on the 10-year bond, reflects market realities, including inflationary pressures and liquidity trends.

With Nigeria’s 2025 budget deficit expected to be partially financed through local and international borrowing, the DMO’s bond issuance strategy remains central to meeting fiscal obligations while ensuring stability in the debt market.

Market observers anticipate further auctions in the coming months as the government seeks to bridge the financing gap and sustain economic growth through strategic capital investments.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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