“DMO Set to Increase Nigeria’s Debt by N450 Billion in April Bond Auction”

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The Debt Management Office (DMO), Director-General, Ms Patience Oniha

 

 

In the latest development from the Debt Management Office (DMO), Director-General Patience Oniha announced plans to raise N450 billion in the upcoming April bond auction scheduled for April 15. This initiative aligns with the DMO’s broader objective of securing up to N1.8 trillion through Federal Government of Nigeria (FGN) bonds in the second quarter of 2024.

 

Details of the Offering

 

The DMO is set to offer N150 billion for the new FGN APR 2029 five-year bond, another N150 billion for the reopened FFBN FEB 2031 17-year bond, and an additional N150 billion for the FGN FEB 2034 10-year bond.

 

Key Information on FGN Bonds

 

FGN bonds represent a significant avenue for investment and are auctioned monthly through the DMO, with semi-annual interest payments. Investors can participate with a minimum subscription of N50,000,001 and in multiples of N1,000 thereafter. These bonds also hold tax exemption benefits for pension funds due to their classification as government securities under the Trustee Investment Act, Company Income Tax Act (CITA), and the Personal Income Tax Act (PITA).

 

Noteworthy Achievements

 

During the first quarter of 2024, the DMO successfully raised approximately N2.39 trillion through FGN bonds, with February witnessing the largest issuance. The January issuance amounted to N418.2 billion, followed by an impressive N1.49 trillion in February, where interest rates reached 19% for the 10-year bonds. March saw the DMO issuing N475.7 billion at substantial interest rates, peaking at 20.45% for the 10-year bond.

 

The bond auction on April 15th promises to be a significant event in Nigeria’s financial landscape, shaping investor sentiment and government financing strategies for the coming months. Stay tuned for updates and insights on this development.


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