The Federal Government of Nigeria has announced plans to raise N1.8 trillion from the bond market in the first quarter of 2025. This initiative is part of its broader strategy to finance critical infrastructure projects, manage budget deficits, and stimulate economic growth.
The Debt Management Office (DMO) disclosed the details in its quarterly issuance calendar, outlining a mix of short- and long-term instruments to be offered to investors. The bonds, ranging in tenors from five to 30 years, are designed to attract a diverse pool of institutional and retail investors.
According to the DMO, the funds raised will primarily be directed toward financing key capital projects in transport, energy, and healthcare. Additionally, part of the proceeds will be used to refinance existing debt and improve the government’s fiscal position.

Patience Oniha, the Director-General of the DMO, emphasized the importance of maintaining investor confidence in the bond market.
“Nigeria’s bond market remains a reliable platform for raising long-term financing. By offering competitive yields and adhering to transparent processes, we aim to sustain investor interest and support our developmental goals,” Oniha said.
Analysts see the move as a necessary step to bridge Nigeria’s funding gap, especially in light of dwindling oil revenues and rising expenditure. However, they also warn of potential risks associated with increased borrowing, including debt sustainability concerns and higher servicing costs.
Dr. Bayo Ademola, a financial expert, noted that while the bond issuance is crucial for addressing immediate fiscal needs, the government must ensure that the borrowed funds are effectively utilized.
“Raising N1.8 trillion is significant, but the focus should be on deploying these funds to projects that yield measurable economic benefits. Transparency and accountability are key to justifying this level of borrowing,” Ademola stated.
The bond market has historically been a cornerstone of Nigeria’s domestic debt strategy, offering the government an avenue to access relatively stable and predictable financing. In recent years, increased participation by local and international investors has bolstered the market’s depth and resilience.
The DMO also announced plans to expand retail participation through its FGN Savings Bonds program, which allows individuals to invest in government securities with lower entry thresholds.
Despite the opportunities, some stakeholders have expressed concerns over the country’s rising debt profile. As of 2024, Nigeria’s public debt had exceeded N87 trillion, sparking debates about fiscal discipline and the need for more robust revenue-generation strategies.
To mitigate these concerns, the Federal Government has reiterated its commitment to implementing economic reforms, including tax policy adjustments, diversification of revenue streams, and fostering private sector investments.
As the bond issuance program unfolds, the government will face the dual challenge of meeting immediate funding needs while maintaining a sustainable fiscal trajectory. With careful planning and execution, the N1.8 trillion target could serve as a catalyst for economic revitalization and long-term growth.
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