The Federal Government of Nigeria (FGN) bond market witnessed a remarkable surge in investor interest during its November 2025 auction, with subscriptions exceeding supply by 42.8 percent. According to the Debt Management Office (DMO), total subscriptions reached an impressive N657.3 billion, surpassing the N460 billion offered. Allotments also surged, climbing 85.9 percent to N583.52 billion compared to N313.77 billion in October, highlighting growing confidence in government securities.
In the November auction, the DMO offered two key instruments: the 17.945 percent FGN AUG 2030 (5-year reopening) and the 17.95 percent FGN JUN 2032 (7-year reopening), each with N230 billion allocated. The 5-year bond attracted N147.9 billion in subscriptions from 37 successful bids, while the 7-year bond drew a staggering N509.39 billion from 121 successful bids. Most of the allotments were directed to the 7-year instrument, which received N448.72 billion—nearly double the N225.97 billion allocated in October. The 5-year tenor also saw increased allotments, totaling N134.79 billion, up from N87.8 billion the previous month.
Yield rates reflected a slight uptick amid strong demand. The 5-year bond cleared at 15.9 percent, a minor rise from October’s 15.83 percent, while the 7-year bond settled at 16 percent, compared to 15.85 percent previously. The range of bids tightened, signaling more concentrated investor interest. The 5-year bond’s yields ranged between 14.9 percent and 17.94 percent, and the 7-year bond between 14.9 percent and 17.95 percent, compared to wider ranges in October.
These results underscore sustained investor confidence in Nigerian government bonds, fueled by attractive yields and the government’s ongoing commitment to debt market stability. Analysts view the oversubscription as a positive signal for Nigeria’s capital markets, suggesting that investors remain eager to participate in government debt instruments despite economic uncertainties.