DMO raises N1.4trn in FGN bonds auction for February — lower than N2.5trn offer value

The Debt Management Office (DMO) says it raised N1.495 trillion from the federal government of Nigeria (FGN) bonds at its monthly auction of February 2024.

On February 15, the debt agency offered two federal government bonds valued at N2.5 trillion for subscription at N1,000 per unit.

While the first offer is a seven-year bond valued at N1.25 trillion and expected to mature in February 2031, the second offer is a 10-year bond also valued at N1.25 trillion and expected to mature in February 2034.

The N2.5 trillion bond offer is part of the new domestic borrowing of N6 trillion in the 2024 Appropriation Act.

Providing updates on the bonds on Tuesday, the debt office said it received total bids of N1.9 trillion — the highest received in any of the FGN securities auctions.

“At the close of the auction, a total of N873.53 billion was allotted for the 2031 FGN bond and N621.38 billion was allotted for the 2034 FGN bond, making a total allotment of N1.495 trillion,” DMO said.

“The relatively large amount on offer was based on the FGN’s financing need, the opportunity to attract foreign investors, as well as, the premise that some local investors may be able to access pools of funds.”

The FGN bonds and other government securities like the savings bond and the Sukuk bond constitute the local component of government borrowing, the DMO said.