Nigeria’s Debt Management Office fell short of its target, raising only half of the planned N2.5 trillion in seven and ten-year bonds due to subdued investor interest driven by low-interest rates.
At the auction, the seven-year bond garnered N873.5 billion, representing 69.6% of the offer, while the ten-year bond attracted N621.38 billion, equivalent to 49.6% of the total.
In an unprecedented move, the DMO secured N1.495 trillion in Federal Government of Nigeria (FGN) Bonds during its February 2024 monthly auction. The bonds offered included N1.25 trillion maturing in 2031 and another N1.25 trillion maturing in 2034.
Total bids received amounted to N1.9 trillion, marking the highest volume in any single FGN Securities Auction, indicating substantial interest despite the lower-than-expected subscription.
The DMO attributed the sizable offering to the government’s financial requirements, the allure for foreign investors, and the possibility for local investors to tap into available funding pools.
