The Federal Government of Nigeria has successfully raised over $900 million through its inaugural Domestic Federal Government of Nigeria (FGN) US Dollar Bond issuance.
The Debt Management Office (DMO) hailed this achievement as a significant milestone in Nigeria’s economic development.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced that the bond issuance received an extraordinary 180% oversubscription, reflecting strong investor confidence in Nigeria’s economic stability and growth prospects.
The bond, priced at par and featuring a 9.75% coupon rate over five years, is the first under the Domestic FGN US Dollar Bond Programme established by Presidential Executive Order No. 16 of 2023.
The landmark issuance attracted a broad spectrum of investors, including Nigerians and non-Nigerians residing in the country, Nigerians in the diaspora, and qualified institutional investors.
The bond will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited, marking Nigeria’s entry into a more sophisticated capital market and fostering financial inclusion.
According to Edun, the proceeds from the bond will be allocated to key economic sectors as approved by President Bola Ahmed Tinubu.
He emphasised that the success of the issuance demonstrates the government’s dedication to diversifying its funding sources and supporting economic growth despite ongoing challenges.
“The issuance of this inaugural Domestic FGN US Dollar Bond demonstrates that investors, as well as Nigerians, continue to have faith in the country’s economy,” Edun stated.
Director General of the DMO, Ms. Patience Oniha, expressed appreciation for the contributions of all parties involved in the bond issuance.
She commended Africa Finance Corporation as the Global Coordinator, United Capital Plc as the Lead Issuing House/Coordinator, and Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited as Issuing Houses.
Oniha also acknowledged the roles of legal partners Olaniwun Ajayi LP and G. Elias, as well as financial advisers Constant Capital Markets and Securities Limited and Iron Global Markets Limited.
“This transaction was made possible through the expertise and guidance of our advisers,” Oniha said.
“We also appreciate the continued support of the Nigerian public and our institutional partners who contributed to the successful completion of this historic issuance.”
She added that the impressive outcome, with over $900 million raised—representing a 180% subscription over the $500 million offered—and the diverse range of investors, underscores the growing sophistication of Nigeria’s domestic fixed-income market.
The DMO reaffirmed the Federal Government’s commitment to collaborating with investors and stakeholders to drive sustained economic growth and development in Nigeria.
