DMO raises interest rates on reopened bonds

Agency Report

The Debt Management Office (DMO) has increased the spot rates on Nigerian government bonds by 1.30% per cent at the primary market auction for December.

At the last Federal Government of Nigeria (FGN) bonds auction for 2025 conducted on Monday, the DMO reopened the AUG-2030 and JUN-2032 bonds for investors subscription.

The authority offered a total of NGN460.00 billion across 5 years and 7 years reopened papers for subscription.

The Debt Office eventually allotted NGN596.47 billion for the reopened bonds to investors seeking elevated returns on their portfolios. Stop rates cleared higher at 17.20% for AUG-2030 and 17.30 per cent for JUN-2032, compared with 15.90 per cent and 16.00 per cent at the previous auction.

In the secondary market, trading activity began the week quietly, with investors shifting their attentions towards the December FGN Bond auction, with investors weighing inflation data for November.

DMO repriced rates despite disinflation as Nigeria’s headline inflation eased to 14.45% from 16.05% in Oct-2025. This marks the eighth consecutive month of deceleration since the CPI rebasing earlier in the year, reinforcing the narrative of gradually moderating price pressures across the economy.

According to MarketForces Africa trading activities in the bond space remained limited, as modest demand appeared around the short-tenor maturities. The 20-Mar-27 and 28-Mar-28 bonds saw buying interest, with yields dropping by 2 bps each to 16.82 per cent and 16.95 per cent, respectively.

However, 20-Mar-26 and 29-Jun-35 saw yields increase by 4 bp and 1 bp to 16.16% and 16.79% per cent respectively. Debt Office Hikes Interest Rates on Reopened Bond by 1.30 per cent.