The Nigerian Federal Government collected ₦211.144 billion from its December 2024 bond sale, which is much less than the ₦346.155 billion it got in November. The Debt Management Office (DMO) handled the sale and reopened two existing bonds: the 19.30% FGN APR 2029 (a 5-Year Bond) and the 18.50% FGN FEB 2031 (a 7-Year Bond). The outcome reflected a decline in both subscription and allotment volumes, signaling a shift in market dynamics.
At the auction on December 16, 2024, the total amount of money people wanted to invest in the two bonds was ₦278.82 billion. This was 24.56% less than the ₦369.585 billion recorded in November.
For the 5-Year Bond, the amount people wanted to invest was ₦67.457 billion, which was ₦8.103 billion or 10.73% lower than the ₦75.560 billion in November. The 7-Year Bond saw a bigger drop, with the investment amount falling to ₦211.363 billion from ₦294.025 billion in November, a decrease of ₦82.662 billion or 28.12%.
In December, the total amount given out was ₦211.144 billion, which is 39.00% less than the ₦346.155 billion given out in November. The amount for the 5-Year Bond decreased to ₦51.857 billion from ₦63.530 billion in November, and the 7-Year Bond amount also dropped to ₦159.287 billion from ₦282.625 billion.
There was also a big drop in the number of successful bids, which went down to 98 in December from 198 in November, a decrease of 50.51%. This shows that either fewer investors were interested or the rules for giving out the bonds became stricter.
Even though the number of subscriptions and the amount of bonds issued decreased, the interest rates stayed mostly the same. The 5-Year Bond saw a small rise in its rate, going from 21.00% in November to 21.14% in December. On the other hand, the 7-Year Bond kept its rate steady at 22.00% for both months. This steadiness shows that the Federal Government kept offering good returns to keep investors confident.
The drop in subscriptions and bond issues might be due to less money available at the end of the year, which is common, and because investors were being careful due to possible changes in the economy. Also, the lower number of bonds issued could mean the government is trying to borrow more carefully to make sure it can manage its debt well.
