The Debt Management Office (DMO) announced that the Federal Government is aiming to raise N2.5 trillion in its second bond auction of the year.
In a circular released on Wednesday, the DMO outlined that the offerings include N1.25 trillion with a maturity date set for February 2031 and an additional N1.25 trillion with a maturity date scheduled for February 2034.
The federal government is acquiring these funds through its FGN savings bonds, which form a component of its domestic borrowing strategy.
“Debt Management Office on behalf of the Federal Government of Nigeria offers for subscription by auction and is authorized to receive applications for N1,250,000,000,000.00 FGN FEB 2031 (7-Yr NEW) and N1,250,000,000,000.00-FGN FEB 2054 (10-Yr NEW),” the circular stated.
The auction is scheduled for February 19, 2024, with the settlement set for February 21, 2024.
In the previous year, the Federal Government amassed approximately N7.06 trillion from the fixed-income market.
For this year, the Federal Government anticipates its new borrowings to reach N7.83 trillion.
The latest Federal Government bonds have a face value 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 typically made semi-annually.
In January, the Federal Government offered a two-year FGN Savings bond due on January 17, 2026, at an interest rate of 11.033 percent per annum and another three-year FGN Savings Bond due on January 17, 2027, at an interest rate of 12.033 percent per annum.
It allocated N603.42 billion for the two-year tenor bond and N1.394 trllion for the three-year bond.