Nigeria’s Debt Management Office said the Federal Government of Nigeria plans to raise N1.8 trillion from the bond market in the first quarter of 2025.
According to the recently released FGN bond issuance schedule, there is a mix of reopened and new bonds spread across three monthly auctions scheduled for January, February and March 2025.
This financing effort is part of the Nigerian government’s strategy to address a projected budget deficit of N13.08 trillion in 2025, equivalent to 3.87% of the country’s gross domestic product.
Bonds will serve as a critical tool to finance critical infrastructure and close budget gaps.
The bond calendar highlights the reopening of the 19.30% FGN APR 2029 bond with a remaining maturity of four years and three months.
The Nigerian government plans to offer between 150 billion and 200 billion naira in each of the three auctions, making the bond an integral part of the overall program.
Similarly, the FGN FEB 2031 18.50% bond, with a maturity of six years and one month from January 2025, will also be reopened and offered in the same range of N150 billion to N200 billion through auction.
Additionally, a new bond, the FGN JAN 2035, will be introduced to the market, targeting investors looking for longer-term instruments.
-With an initial duration of 10 years, it will be priced in the same range of 150 billion to 200 billion naira.
If the government hits the upper limit of the bidding range across the three auctions, it could raise up to N1.8 billion by the end of the quarter.
The auction is scheduled to take place on January 27, February 24 and March 24, 2025.
While the timeline remains subject to adjustment, the structured approach underscores the government’s commitment to transparency and predictability in meeting its funding needs.
Friday’s Punch newspaper report recalls that in 2024, the Federal Government of Nigeria borrowed about N5.84 trillion from the FGN bond market as part of a move to bridge its 2024 budget deficit.
However, the figures represent a decline of 0.17% from the N5.85 trillion borrowed in 2023 through the Debt Management Office.
GIK/fss/te/APA
Related News :