Bond auction in November 2025 drew investors in droves, eager for government securities.
According to the Debt Management Office (DMO), investors submitted total bids of around ₦657 billion, surpassing the ₦460 billion on offer.
The auction reopened two existing bonds: the 5-year Aug 2030 and 7-year Jun 2032 issues.
5-Year Bond Performance
For the 5-year bond, investors bid ₦147.869 billion, slightly below its ₦230 billion offer.
Consequently, the DMO allotted ₦134.799 billion at a marginal rate of 15.9%.
7-Year Bond Dominates
In contrast, the 7-year bond stole the spotlight, attracting ₦509.392 billion in bids — more than double the offered amount.
The DMO allotted ₦448.722 billion to successful bidders, plus ₦6 billion through non-competitive allocation, at a marginal rate of 16%.
Although the coupon rates remain at 17.945% and 17.95%, investors determined pricing through the auction yields.
Clearly, longer-term bonds attracted stronger demand, reflecting confidence amid inflation and currency risks.
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Investors showed readiness to hold longer maturities despite economic uncertainties.
Investor Confidence And Strategy
Moreover, by reopening existing bonds, the government actively elongates debt maturities and deepens the domestic bond market.
The overall oversubscription of 120% signals robust institutional trust in Nigerian government securities.
Each bond costs ₦1,000, with minimum subscriptions of ₦50,001,000 and additional subscriptions in multiples of ₦1,000.
Successful bidders pay prices based on yield-to-maturity plus accrued interest from the last coupon.
Finally, the auction complied fully with the Debt Management Office Act 2003 and the Local Loans Act.
The strong 7-year demand shows investors prefer safer, longer-term returns, while weaker 5-year bids highlight selective investor strategies.
Overall, the auction captured both optimism and caution, telling a vivid story of disciplined market behaviour.
