In the eight-month period leading up to August 2023, the value of listed FGN (Federal Government of Nigeria) bonds on the Nigerian Exchange Limited (NGX) took a substantial hit, plummeting by approximately 90 percent. The total value of these bonds nosedived from N1.6 trillion in the corresponding period of 2022 to a mere N148.2 billion. This drastic decline has raised eyebrows within financial circles and may be indicative of broader economic shifts.
Surprisingly, in the midst of this downturn, the Federal Government of Nigeria proceeded to list an additional 11,702,998,918 units of its bonds, according to a notification signed by Lilian Dako on behalf of the Head of the Listings Regulation Department for the Federal Government of Nigeria. This move, which falls under the Supplementary Listing of FGN Bonds for the period spanning January to September 2023, occurred on October 10, 2023.
The supplementary listings for FGN Bonds within the months of January through May 2023 have pushed the total outstanding units of the 13.98 percent FGN Feb 2028 bonds to 1,495,291,322.
For other bond categories, the 12.50 percent FGN APR 2032 bonds had a total of 423,790,646 units outstanding as of October 10, while the 16.2499 percent FGN APR 2037 bonds showed an outstanding unit count of 1,168,846,545.
Various FGN bonds exhibited differing levels of activity. Notably, the 14.80 percent FGN APR 2049, 13.00 percent FGN JAN 2042, 12.98 percent FGN MAR 2050, and 14.55 percent FGN APR 2029 bonds held outstanding units of 1,778,920,045, 958,593,154, 1,595,413,424, and 860,453,782, respectively.
Specifically, for the 14.70 percent FGN JUN 2033 bonds, there were 91,520,000 outstanding units for the period spanning June to September. Similarly, the 15.45 percent FGN JUN 2038 bonds boasted 398,989,000 units outstanding, while the 15.70 percent FGN JUN 2053 bonds displayed an impressive 1,220,336,000 units during the same timeframe.
The FGN’s bond activity in this context presents a complex financial landscape and invites further scrutiny of the economic dynamics affecting the Nigerian financial market.
