Debt Sales Dip by N1.9 Trillion in June — But Investor Appetite Hits Record Highs!
Despite a steep N1.9 trillion drop in Nigeria’s sovereign debt issuance for June 2025, investor appetite for fixed-income instruments remains remarkably strong — a signal that demand is not fading even as supply slows.
Here’s what you need to know:
Sharp Drop in Government Debt Sales
• The Debt Management Office (DMO) recorded a massive 49.6% month-on-month fall in Treasury Bills (T-bills) issuance. June saw just N612.02 billion sold compared to N1.21 trillion in May.
• FGN Bond auctions also dipped, with sales plunging 66.74% from N300.69 billion in May to only N100 billion in June.
• Open Market Operations (OMO) sales by the Central Bank of Nigeria (CBN) dropped 36.12%, from N2.37 trillion in May to N1.51 trillion in June.
But Demand Skyrocketed!
• T-bills were oversubscribed by a massive 315.44%.
• FGN bonds saw even higher demand with 502.86% oversubscription.
• OMO bills recorded 154.92% oversubscription, showing the financial system is still awash with liquidity and investor interest.
Muted Corporate Bond Market
• The non-sovereign (corporate) bond market remained flat in June:
• No new listings or redemptions on the FMDQ Exchange.
• Outstanding non-sovereign bond value held steady at N2.25 trillion.
Commercial Paper Market Cools Down
• Fresh Commercial Paper (CP) issuances fell by 60.85%, with total value quoted in June at just N144.89 billion, down from N370.1 billion in May.
• 13 CPs were quoted, with 7 from financial services firms.
• However, the outstanding CP value rose slightly by 2.42% to N1.34 trillion, showing companies are still actively using short-term debt instruments.
Bottom Line
While the government reduced its borrowing in June, the soaring demand for fixed-income securities shows that investor confidence in Nigerian debt instruments remains intact. With oversubscription levels surging, the market is clearly still hungry — even as issuers pause to reassess their strategies amid changing macroeconomic conditions.
Despite a steep N1.9 trillion drop in Nigeria’s sovereign debt issuance for June 2025, investor appetite for fixed-income instruments remains remarkably strong — a signal that demand is not fading even as supply slows.
Here’s what you need to know:
Sharp Drop in Government Debt Sales
• The Debt Management Office (DMO) recorded a massive 49.6% month-on-month fall in Treasury Bills (T-bills) issuance. June saw just N612.02 billion sold compared to N1.21 trillion in May.
• FGN Bond auctions also dipped, with sales plunging 66.74% from N300.69 billion in May to only N100 billion in June.
• Open Market Operations (OMO) sales by the Central Bank of Nigeria (CBN) dropped 36.12%, from N2.37 trillion in May to N1.51 trillion in June.
But Demand Skyrocketed!
• T-bills were oversubscribed by a massive 315.44%.
• FGN bonds saw even higher demand with 502.86% oversubscription.
• OMO bills recorded 154.92% oversubscription, showing the financial system is still awash with liquidity and investor interest.
Muted Corporate Bond Market
• The non-sovereign (corporate) bond market remained flat in June:
• No new listings or redemptions on the FMDQ Exchange.
• Outstanding non-sovereign bond value held steady at N2.25 trillion.
Commercial Paper Market Cools Down
• Fresh Commercial Paper (CP) issuances fell by 60.85%, with total value quoted in June at just N144.89 billion, down from N370.1 billion in May.
• 13 CPs were quoted, with 7 from financial services firms.
• However, the outstanding CP value rose slightly by 2.42% to N1.34 trillion, showing companies are still actively using short-term debt instruments.
Bottom Line
While the government reduced its borrowing in June, the soaring demand for fixed-income securities shows that investor confidence in Nigerian debt instruments remains intact. With oversubscription levels surging, the market is clearly still hungry — even as issuers pause to reassess their strategies amid changing macroeconomic conditions.