Amid Hardship, Tinubu Plans to Borrow N2.5 Trn Through FGN Bond in February

Chief Bola Tinubu is set to procure N2.5 trillion in the upcoming second FGN bond auction of the year, as disclosed by the Debt Management Office in a circular released on Wednesday.

This offering consists of two tranches: one valued at N1.25 trillion maturing in February 2031 and another N1.25 trillion with a 10-year tenor.

The issuance of FGN savings bonds plays a pivotal role in the Federal Government’s domestic borrowing strategy.

In 2023, the government amassed approximately N7.06 trillion from the fixed-income market, with projections for this year (2024) reaching N7.83 trillion in new borrowings.

Chief Bola Tinubu previously sought approval from the National Assembly for external borrowing totaling around $8.69 billion and €100 million, spanning from 2022 to 2024.

The newly issued FG bonds have a face value of N1,000, requiring a minimum subscription of N50,001,000 and subsequent increments in multiples of N1,000. Interest payments are made semi-annually.

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In the preceding auction held in January, the FG offered a two-year FGN Savings bond due on January 17, 2026, at an annual interest rate of 11.033 percent, and a three-year FGN Savings Bond due on January 17, 2027, at an annual rate of 12.033 percent.

Allotments for the two-year and three-year bonds amounted to N603.42 billion and N1.394 trillion, respectively.