The Federal Government of Nigeria is targeting ₦300 billion in revenue from the Federal Government of Nigeria (FGN) bond market in May 2025, as part of its strategy to finance critical infrastructure projects and manage fiscal deficits.
The bond issuance, coordinated by the Debt Management Office (DMO), is designed to attract both domestic and international investors, leveraging Nigeria’s growing reputation as a viable investment destination. The funds are earmarked for priority sectors such as transportation, power, education, and healthcare, aligning with President Tinubu’s Renewed Hope Agenda to drive sustainable development.
The FGN bond market has become a cornerstone of Nigeria’s fiscal policy, enabling the government to bridge budget gaps without over-relying on external borrowing. The ₦300 billion target reflects cautious optimism about investor confidence, despite macroeconomic challenges such as inflation, which has hovered around 20% in recent months, and naira volatility. The DMO has introduced competitive interest rates and tax incentives to boost participation, while emphasizing the government’s commitment to fiscal discipline and debt sustainability. Recent bond issuances have seen strong demand from pension funds, banks, and foreign portfolio investors, signaling trust in Nigeria’s long-term economic prospects.
The May bond issuance is part of a broader plan to raise over ₦1 trillion annually through the domestic debt market, reducing Nigeria’s exposure to volatile international markets. Analysts note that the success of the initiative will depend on the government’s ability to maintain economic stability and implement promised reforms. The funds are expected to support projects like the Lagos-Ibadan Expressway upgrade, rural electrification, and healthcare infrastructure improvements.
However, concerns about rising debt servicing costs, which consumed over 50% of federal revenue in 2024, have prompted calls for greater transparency in how bond proceeds are utilized. The May issuance will be a critical test of the Tinubu administration’s fiscal strategy as it navigates Nigeria’s complex economic landscape.