February 15, (THEWILL) – The Federal Government is targeting to raise N2.5 trillion from its second FGN bond auction of 2024, as part of efforts to raise more funds through debt instruments, the Debt Management Office (DMO) said on Wednesday.
In a circular on Wednesday, the Debt Office explained that the offerings consisted of N1.25 trillion with a maturity date of February 2031 and another N1.25 trillion with a maturity date of February 2034.
“Debt Management Office on behalf of the Federal Government of Nigeria offers for subscription by auction and is authorized to receive applications for N1,250,000,000,000.00 FGN FEB 2031 (7-Yr NEW) and N1,250,000,000,000.00-FGN FEB 2054 (10-Yr NEW),” the circular stated.
It stated that the auction date is February 19, 2024, while the settlement date is February 21, 2024.
The DMO had in January, offered four bonds worth N90 billion each, raising about N418.197 billion in total but the February 2024 auction appeared to be the first time the Federal Government is borrowing over a trillion through a single bond.
According to the DMO, the FGN bonds have fulfilled all the criteria outlined in the Trustee Investment Act, allowing trustees to invest in them and they qualified as Government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), ensuring they are tax-exempt for Pension Funds and other investors.
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