By: ThinkBusiness Africa
The Federal Government of Nigeria (FGN) has successfully raised a total of N596.465 billion in the final FGN Bond auction for the year, conducted by the Debt Management Office (DMO) in December 2025.
The auction result signals robust investor confidence in sovereign debt instruments, with the total allotment significantly exceeding the N460 billion initially offered, reflecting continued high liquidity and demand within the domestic fixed-income market.
According to DMO the auction, held on December 15, 2025, involved re-openings of two FGN Bonds: the 17.945% FGN AUG 2030 (5-year bond) and the 17.95% FGN JUN 2032 (7-year bond). Both bonds were offered at N230 billion respectively.
The 7-year tenor saw a massive 3 times oversubscription of N731.40 billion against an offer of N230 billion. This high demand allowed the DMO to allot more than double the offer, raising N494.478 billion from this tranche alone.
Conversely, the 5-Year (August 2030) bond was undersubscribed, raising only N101.987 billion against the N230 billion offer. This disparity shows a clear preference among investors for the slightly longer tenor.
The N596.465 billion raised at the December 2025 auction caps a year of sustained domestic borrowing through the FGN bond market.
Between January and December 2025, total bond issuance reached approximately N5.12 trillion. DMO data showed.
According to DMO, In January, the Nigerian government secured N669.94 billion against an offer of N450 billion. February stood out with N910.39 billion allotted from N350 billion offered, reflecting intense demand in the first quarter of this year.
In September, the authorities raised 576.62 billion in allotments from a N200 billion offer. November and December closed the year with strong momentum, raising N657 billion and N596.465 billion respectively, both from offer sizes of N460 billion.
The N596.465 billion raised in December will be channeled towards funding the government’s budget deficit, reducing reliance on the CBN’s Ways and Means advances, a key source of inflationary pressure.
The robust closure to the 2025 bond calendar provides a strong foundation for the government’s borrowing plans for the upcoming fiscal year, reinforcing the FGN’s capacity to access capital from the domestic market.
