Despite Falling Short of its Target, FG Raises N1.49trn in Two FGN Bonds Auctions

The federal government in February realised N1.49 trillion from the two FGN bond offer issued by the Debt Management Office (DM0) below the target of N2.5 trillion.

This was contained in a statement by the DMO where it said the bid of N1.9 trillion received was a record in the nation’s history in terms of FGN securities auction.

Furthermore, it noted that the 2031 bond had a total allotment of N873.53 billion while that of the 2034 bond stood at N621.38 billion.

It stated, “In an unprecedented development, the Debt Management Office (DMO) raised N1.495 trillion Federal Government of Nigeria (FGN) bonds at its monthly auction for February 2024.

“The DMO offered N1.25 trillion 7-year FGN bonds maturing in 2031 and another N1.25 trillion 10-year FGN bond maturing in 2034.

“For the offer, the DMO received total bids of N1.9 trillion, making it the highest it has received in anyone FGN securities auction. At the close of the auction, a total of N873.53 billion was allotted for the FGN 2031 bonds and N621.38 billion for the 2034 FGN bonds, making a total allotment of N1.495 trillion”

The DMO further explained that the large amount on offer was based on the federal financing needs and to attract foreign investors.

In an earlier report, the federal government sought to borrow N2.5 trillion in FGN bonds offer issued by the DMO. It marked the second bonds offer for the year 2024.

They are both newly created bonds, and are offered at a unit price of N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000. Interest payments on FGN bonds are made semi-annually (twice a year).