The Nigerian Federal Government aims to generate N2.5 trillion in its upcoming FGN bonds auction, as outlined in a circular from the Debt Management Office.
This includes N1.25 trillion with a maturity date of February 2031 and another N1.25 trillion with a 10-year tenor.
These FGN savings bonds form part of the government’s domestic borrowing strategy, aligning with its goal to raise funds, with the 2024 national budget projecting new borrowings reaching N7.83 trillion.
President Bola Tinubu sought approval for external borrowing of $8.69 billion and €100 million for 2022 to 2024.
The face value of the latest FG bonds is N1,000, requiring a minimum subscription of N50,001,000 and subsequent increments in multiples of N1,000.
These bonds have semi-annual interest payments.
In January, the government offered a two-year FGN Savings Bond at 11.033% per annum and a three-year FGN Savings Bond at 12.033% per annum, allotting N603.42 billion for the two-year tenor and N1.394 trillion for the three-year bond.
Last year, the Federal Government successfully raised about N7.06 trillion from the fixed-income market.
