The Federal Government plans to raise N1.8 trillion through the bond market in the first quarter of 2025, as stated by the Debt Management Office (DMO). The FGN Bond Issuance Calendar outlines three monthly auctions in January, February, and March, aimed at addressing a projected N13.08 trillion budget deficit for 2025, which represents 3.87% of GDP.
The reopening of current instruments and the issuance of a new 10-year bond are both part of the bond program. The main products are:
- 19.30% FGN APR 2029 bond: Remaining tenor of 4 years, with a target range of N150–N200 billion per auction.
- 18.50% FGN FEB 2031 bond: Remaining tenor of 6 years, similarly targeted at N150–N200 billion per auction.
- New FGN JAN 2035 bond: A 10-year bond aimed at long-term investors, also within the N150–N200 billion range.
The auctions, scheduled for January 27, February 24, and March 24, could collectively generate up to N1.8 trillion if the upper limits are met.
The government’s objectives of predictability and transparency in financing vital projects and closing budgetary shortages are in line with this structured issuance. While overall subscriptions reached N7.09 trillion in 2024, the government raised N5.84 trillion from the bond market, which was somewhat less than the N5.85 trillion borrowed in 2023.
