Tinubu Plans to Borrow N2.5 Trn Through FGN Bond in February

Chief Bola Tinubu plans to borrow N2.5tn in the second FGN bonds auction for the year

This offering, as outlined by the Debt Management Office in a circular issued on Wednesday, comprises N1.25tn with a maturity date set for February 2031 and another N1.25tn with a 10-year tenor.

FGN savings bonds form a crucial component of the Federal Government’s domestic borrowing strategy.

In 2023, approximately N7.06tn was raised by the government from the fixed-income market. This year (2024), the government anticipates its new borrowings to reach N7.83tn.

Notably, Chief Bola Tinubu had sought approval from the National Assembly for approximately $8.69bn and €100m as part of the external borrowing plan spanning from 2022 to 2024.

The newly issued FG bonds carry a face value of N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000. Interest payments on FGN bonds are typically made semi-annually.

In the previous auction held in January, the FG offered a two-year FGN Savings bond due January 17, 2026, at 11.033 per cent per annum and a three-year FGN Savings Bond due January 17, 2027, at 12.033 per cent per annum.

The allotment for the two-year tenor bond was N603.42bn, while N1.394tn was allocated for the three-year bond.

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