FG Opens ₦1 Trillion Bond Offer

Government Seeks ₦1 Trillion From Investors

The Debt Management Office has opened a ₦1 trillion Federal Government bond offer as the government continues to raise money from the domestic capital market.

The offer consists of a new ₦400 billion 10-year bond maturing in 2036 and a ₦600 billion reopening of an existing bond due in 2038.

The 2038 bond carries a coupon rate of 15.45% per year. The minimum subscription for the auction is about ₦50 million, making the primary offer largely targeted at institutional and high-value investors.

Interest payments are made twice a year, while the principal is repaid when the bond matures.

The government uses bond sales to raise funds for its financing needs, including public expenditure and infrastructure.

Monafrika’s Take

Borrowing is not automatically bad. The bigger issue is what the borrowed money is used for.

If government borrowing produces better roads, electricity, healthcare, education, and productive infrastructure, Nigerians can see the value.

But borrowing to finance waste only leaves future generations with the bill.