Nigeria’s latest bond auction drew trillion-naira bids, signaling investor confidence even as yields declined for a second month.
Nigeria’s October 2025 bond auction demonstrated strong investor appetite for Federal Government securities despite declining yields. According to Debt Management Office (DMO) data, the five-year FGN AUG 2030 bond cleared at 15.83% (down from 16.00%), while the seven-year FGN JUN 2032 settled at 15.85% (down from 16.20%).
Yet, demand remained intense. The seven-year bond drew ₦1.06 trillion in bids—slightly above September’s ₦1.03 trillion—while the five-year note attracted ₦212.66 billion. This sustained interest reflects strong liquidity and investor preference for the stability of sovereign debt.
Despite oversubscription, the DMO cut total allotments by 45.6% to ₦313.77 billion, signaling a cautious borrowing stance. Only ₦225.97 billion was accepted from the seven-year bids, with ₦3 billion added via the non-competitive window.
The auction followed the CBN’s September rate cut—its first since 2020—reducing the MPR to 27% amid easing inflation at 18.02%. With demand still exceeding supply, analysts expect further yield compression as investors continue to view FGN bonds as safe, liquid, and value-stable assets.
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