Debt Moves Ahead!
FG Targets ₦360 Billion from Bond Sales in Q3 2025 to Tackle Budget Deficit
The Federal Government of Nigeria (FGN) is gearing up to raise as much as ₦360 billion from the domestic bond market in the third quarter of 2025, according to a fresh bond issuance calendar released by the Debt Management Office (DMO).
This strategic fundraising initiative is part of the government’s broader efforts to bridge fiscal deficits, enhance infrastructure financing, and sustain debt management operations.
️ The Bond Issuance Plan — What to Know
Between July and September 2025, the DMO will reopen two existing bond series every month:
• 19.30% FGN April 2029 Bond
• 17.95% FGN June 2032 Bond
Each monthly issuance is expected to offer ₦40 billion to ₦60 billion per bond, which means up to ₦120 billion could be raised each month, culminating in ₦360 billion across Q3, if fully subscribed at the upper range.
Key Auction Dates and Tenors
The scheduled auction dates are:
• July 28
• August 25
• September 29
The two instruments being reopened will come with term-to-maturity ranges spanning from three years and seven months to six years and eleven months, depending on the month of issuance.
Why This Matters
This bond issuance aligns with the government’s key objectives:
• ️ Financing capital and recurrent expenditures
• Managing the country’s debt profile more sustainably
• Tapping long-term domestic investors for stable funding
• Maintaining confidence in Nigeria’s fixed-income market
It also reflects Nigeria’s commitment to domestic borrowing over external debt, reducing exposure to foreign exchange risks while stimulating internal capital market activity.
⚠️ Market Conditions Could Shift the Plan
While the issuance calendar provides a roadmap, the DMO made it clear that the plan is provisional and subject to adjustments based on prevailing market dynamics and the government’s funding needs.
Should demand conditions change or rates become unfavourable, the volume or frequency of auctions could be revised accordingly.
FGN Savings Bond – Also on the Radar
In a related development, the DMO also confirmed the July 2025 issuance of the Federal Government of Nigeria Savings Bond.
This offering opened on Monday, July 7, and is set to close on Friday, July 11, with settlement scheduled for July 16, 2025. The Savings Bond targets retail investors and offers an accessible platform for Nigerians to participate in the government bond market with smaller ticket sizes.
Key Takeaway for Investors
For institutional and retail investors alike, this bond calendar provides early visibility into government borrowing intentions.
• Fixed-income investors may want to align portfolios to take advantage of attractive yields.
• Financial analysts should monitor how this issuance could influence interest rates, liquidity, and market sentiment.
• And for policymakers, it signals the government’s continued dependence on structured domestic financing as a tool for economic stability.
FG Targets ₦360 Billion from Bond Sales in Q3 2025 to Tackle Budget Deficit
The Federal Government of Nigeria (FGN) is gearing up to raise as much as ₦360 billion from the domestic bond market in the third quarter of 2025, according to a fresh bond issuance calendar released by the Debt Management Office (DMO).
This strategic fundraising initiative is part of the government’s broader efforts to bridge fiscal deficits, enhance infrastructure financing, and sustain debt management operations.
️ The Bond Issuance Plan — What to Know
Between July and September 2025, the DMO will reopen two existing bond series every month:
• 19.30% FGN April 2029 Bond
• 17.95% FGN June 2032 Bond
Each monthly issuance is expected to offer ₦40 billion to ₦60 billion per bond, which means up to ₦120 billion could be raised each month, culminating in ₦360 billion across Q3, if fully subscribed at the upper range.
Key Auction Dates and Tenors
The scheduled auction dates are:
• July 28
• August 25
• September 29
The two instruments being reopened will come with term-to-maturity ranges spanning from three years and seven months to six years and eleven months, depending on the month of issuance.
Why This Matters
This bond issuance aligns with the government’s key objectives:
• ️ Financing capital and recurrent expenditures
• Managing the country’s debt profile more sustainably
• Tapping long-term domestic investors for stable funding
• Maintaining confidence in Nigeria’s fixed-income market
It also reflects Nigeria’s commitment to domestic borrowing over external debt, reducing exposure to foreign exchange risks while stimulating internal capital market activity.
⚠️ Market Conditions Could Shift the Plan
While the issuance calendar provides a roadmap, the DMO made it clear that the plan is provisional and subject to adjustments based on prevailing market dynamics and the government’s funding needs.
Should demand conditions change or rates become unfavourable, the volume or frequency of auctions could be revised accordingly.
FGN Savings Bond – Also on the Radar
In a related development, the DMO also confirmed the July 2025 issuance of the Federal Government of Nigeria Savings Bond.
This offering opened on Monday, July 7, and is set to close on Friday, July 11, with settlement scheduled for July 16, 2025. The Savings Bond targets retail investors and offers an accessible platform for Nigerians to participate in the government bond market with smaller ticket sizes.
Key Takeaway for Investors
For institutional and retail investors alike, this bond calendar provides early visibility into government borrowing intentions.
• Fixed-income investors may want to align portfolios to take advantage of attractive yields.
• Financial analysts should monitor how this issuance could influence interest rates, liquidity, and market sentiment.
• And for policymakers, it signals the government’s continued dependence on structured domestic financing as a tool for economic stability.