Key points
- Investors bid N931.5 billion against a N750 billion offer at the March FGN bond auction, a 4.28 percent oversubscription
- The 9-year MAY 2033 bond drew the most interest, pulling in N462.21 billion in bids and N332.71 billion in allotments
- Total allotments fell 7.4 percent to N485.49 billion, down from N524.28 billion in February
Nigeria’s Debt Management Office reported strong investor appetite at the March FGN bond auction, where bids totaled N931.5 billion against a N750 billion offer, a 4.28 percent oversubscription.
Despite the robust demand, the DMO allotted N485.49 billion in total, a 7.4 percent decline from N524.28 billion in February.
The bonds on offer
Three instruments went up for sale: the 17.945 percent FGN AUG 2030 (5-year reopening) at N250 billion, the 17.95 percent FGN JUN 2032 (7-year reopening) at N200 billion and the 19.89 percent FGN MAY 2033 (9-year reopening) at N300 billion.
Investors showed the clearest preference for the longest-dated paper. While the 9-year MAY 2033 bond pulled in N462.21 billion in bids from 154 successful applicants, and the DMO allotted N332.71 billion from that tranche alone.
By contrast, the AUG 2030 bond received N88.79 billion in allotments while the JUN 2032 attracted N63.99 billion.
Yields settle below coupon rates
Clearing yields came in below the stated coupon rates across all three instruments: 16 percent for the AUG 2030, 16.15 percent for the JUN 2032 and 16.64 percent for the MAY 2033.
Bid ranges during the auction spanned 14.8 percent to 17 percent for the AUG 2030, 15 percent to 17.95 percent for the JUN 2032, and 14 percent to 19.89 percent for the MAY 2033. The tighter clearing yields relative to stated coupons suggest investors accepted lower returns to lock in allocation, pointing to genuine confidence in Nigeria’s sovereign debt.
Indeed, the March FGN bond auction results confirm a continued pull toward longer-duration paper, even as the DMO held allotments well below total bids. Finally, that discipline signals the office is managing Nigeria’s debt maturity profile with deliberate intent, not simply chasing volume.
