The Federal Government of Nigeria raised N211.144 billion from its December 2024 bond auction, marking a significant drop from the N346.155 billion raised in November.
Conducted by the Debt Management Office (DMO) on December 16, 2024, the auction reopened two existing instruments: the 19.30 per cent FGN APR 2029 (5-Year Bond) and the 18.50 per cent FGN FEB 2031 (7-Year Bond).
The results underscored a notable decline in both subscription and allotment volumes, reflecting shifting market dynamics.
Total subscriptions for the two bonds amounted to N278.82 billion, a 24.56 per cent decline from November’s N369.585 billion.
The breakdown revealed contrasting interest levels: 5-Year Bond: Subscriptions fell to N67.457 billion from N75.560 billion in November, representing a drop of N8.103 billion or 10.73 per cent.
7-Year Bond: Subscriptions decreased significantly, from N294.025 billion in November to N211.363 billion in December, a decline of N82.662 billion or 28.12 per cent.
Total allotments also saw a sharp decline, with N211.144 billion raised compared to November’s N346.155 billion. This represents a 39 per cent reduction, or N135.011 billion.
5-Year Bond Allotments: Allocations fell to N51.857 billion, down from N63.530 billion in November.
7-Year Bond Allotments: Allocations dropped to N159.287 billion from N282.625 billion in November.
The number of successful bids also plunged, with only 98 successful bids in December compared to 198 in November, a 50.51 percent decrease.
Despite declining subscription and allotment figures, marginal rates remained stable, reflecting investor confidence in the Federal Government’s debt instruments:
5-Year Bond: Marginal rate increased slightly to 21.14 per cent in December from 21.00 per cent in November, a modest rise of 0.14 percentage points.
7-Year Bond: Marginal rate held steady at 22.00 per cent across both months.
