Nigeria plans to sell domestic bonds worth N450 billion at the debt auction slated for April 15, according to the latest notice by the Debt Management Office (DMO).
The debt auction is in line with the DMO’s plan to raise up to N1.8 trillion through FGN bonds in the second quarter (Q2) of 2024.
In the notice published on its website, the DMO said it would offer N150 billion for the new FGN APR 2029 five-year bond. N150 billion for the reopened FGN FEB 2031 17-year bond and N150 billion for the FGN FEB 2034 10-year bond.
Nigeria’s DMO sells bonds on the domestic debt market monthly, with the interest paid semi-annually.
The bonds are issued as part of efforts to raise cash to plug a gap in budget expenditures, help commercial lenders manage liquidity in the system, and set benchmark rates for corporate bond issuance.
So far this year, the DMO has raised about N2.39 trillion through FGN bonds, with the largest issuance occurring in February.
The DMO issued N418.2 billion of FGN bonds in January and N1.49 trillion worth of FGN bonds in February 2024, with interest rates hitting 19% for the 10-year bonds.
Then in March 2024, the DMO issued N475.7 billion at bumper interest rates, with the rate hitting 20.45% on the 10-year bond.
