Nigeria’s Debt Management Office (DMO) will on Monday, November 24, 2025, return to the domestic bond market with a materially upsized offering, targeting between N400 billion and N500 billion through the reopening of two benchmark Federal Government of Nigeria (FGN) bonds.
The issuance represents a notable expansion relative to the initial guidance provided at the start of the quarter.
According to the revised Q4 2025 issuance calendar published on November 18, the DMO will reopen the 17.945% FGN AUG 2030 and 17.95% FGN JUN 2032 issues, with each tranche now sized at N200 billion to N250 billion—well above the earlier range of N120 billion to N150 billion.
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Both instruments anchor the belly of the sovereign curve, with remaining tenors of roughly 4 years, 9 months (2030) and 6 years, 7 months (2032), and continue to serve as key liquidity benchmarks for domestic fixed-income investors.
Expanding Supply as System Liquidity Rises
The larger auction comes at a time when market liquidity is expected to strengthen. The Central Bank of Nigeria (CBN) is preparing to redeem several near-term Open Market Operation (OMO) maturities, including a N32 billion 56-day bill issued on November 7. These repayments will boost short-term liquidity, providing favourable conditions for a sizeable bond reopening.
Revised Q4 Borrowing Plan Signals Stronger Domestic Funding Posture
The updated Q4 calendar underscores the government’s increasing reliance on the local debt market to meet 2025 financing requirements. The DMO now intends to raise N440 billion to N650 billion across three auctions in the quarter.
The first auction, conducted on October 27, delivered N240 billion to N300 billion, while the final issuance of the year which is scheduled for December 15 will replicate the November offer by targeting N400 billion to N500 billion across the same 2030 and 2032 benchmarks.
By mid-December, the reopened bonds will roll down to approximately 4 years, 8 months (2030) and 6 years (2032). However, the DMO reiterated that the calendar remains subject to adjustment should fiscal needs or market conditions shift.
Market analysts note that the continued emphasis on reopening existing benchmarks is intentional. The strategy supports market depth, enhances price discovery, and mitigates the fragmentation risks associated with issuing multiple small, illiquid tenors. Such an approach is aligned with global best practices for building efficient and transparent domestic bond markets.
High Yields and OMO Repayments Position Auction for Strong Demand
Sovereign yields near multi-year highs continue to underpin robust demand from banks, PFAs, asset managers, and other institutional investors. Coupons close to 18% provide an attractive opportunity for portfolio managers seeking to lock in elevated real yields heading into year-end.
Liquidity conditions are also set to improve markedly. Between December 2 and December 30, the CBN will repay N332.450 billion in maturing OMO bills including N450 million under the 361-day programme maturing December 2, and nearly N300 billion linked to the 56-day instrument issued on November 4 and maturing December 30.
The combination of sizable liquidity injections and elevated yield levels is expected to support a stable issuance environment through year-end. Market participants anticipate strong bidding interest and a smooth close to the DMO’s 2025 domestic borrowing programme.
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