The Debt Management Office (DMO) has announced plans to reopen two Federal Government bonds — the FGN AUG 2030 and FGN JUNE 2032 — in a fresh auction scheduled for Monday, October 27, 2025. The offer, valued at ₦260 billion, will see ₦130 billion raised from each bond, both carrying coupon rates of around 17.95%.

The issuance, according to the DMO, is part of the Federal Government’s ongoing domestic borrowing program designed to fund the 2025 fiscal budget and manage its debt profile more efficiently.

Breakdown of the Bond Offering

The reopening covers two medium-term instruments — a five-year AUG 2030 bond at a coupon rate of 17.945%, and a seven-year JUNE 2032 bond at 17.95%. Both issues are being reintroduced to the market to take advantage of sustained investor demand for high-yield government securities.

Settlement for successful bids is expected on Wednesday, October 29, 2025, two days after the auction.

Investors will submit bids based on yield-to-maturity, and settlement prices will include accrued interest. The bonds will pay interest semi-annually, ensuring a steady cash flow for institutional investors such as pension funds, banks, and asset managers seeking reliable fixed-income returns in a high-yield environment.

Investor Demand Expected to Remain Strong

Market analysts anticipate strong participation from institutional players, given the attractive yields and risk-free nature of FGN bonds. With rates hovering around 18%, these instruments provide a compelling alternative to other domestic investment options, particularly amid persistent inflationary pressures.

Analysts also believe that the DMO’s decision to reopen these specific maturities aligns with its strategy to balance debt servicing obligations while sustaining liquidity in the secondary market. The bonds are already listed on both the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange, ensuring transparency and tradability for investors.

Government’s Commitment to Domestic Borrowing

The move follows the Central Bank of Nigeria’s Treasury Bills (T-Bills) auction held on October 22, where the CBN rolled over ₦650 billion in maturing bills across 91-day, 182-day, and 364-day tenors. The auction drew total bids of ₦750.91 billion, with the CBN allotting ₦391.58 billion at higher stop rates — 15.30%, 15.50%, and 16.14% respectively.

This underscores the government’s broader domestic borrowing approach, which focuses on refinancing existing obligations while maintaining investor engagement. By issuing long-term instruments like the FGN AUG 2030 and JUNE 2032, the DMO aims to deepen Nigeria’s bond market and stabilize funding costs.

Key Features of the New Auction

• Total Offer Size: ₦260 billion

• Instruments: Two reopenings

  • ₦130 billion – 17.945% FGN AUG 2030 (5-year tenor)

  • ₦130 billion – 17.95% FGN JUNE 2032 (7-year tenor)

• Auction Date: Monday, October 27, 2025

• Settlement Date: Wednesday, October 29, 2025

• Minimum Subscription: ₦50,001,000 and multiples of ₦1,000 thereafter

• Interest Payment: Semi-annual

• Redemption: Bullet repayment at maturity

• Listing: NGX and FMDQ OTC

• Eligibility: Tax-exempt under CITA and PITA for pension funds and certain institutional investors

Strong Sovereign Backing and Market Confidence

Both bonds are backed by the full faith and credit of the Federal Government of Nigeria, qualifying them as permissible investments under the Trustee Investments Act. They are also recognized as liquid assets for banks’ liquidity ratio requirements — a factor that makes them highly attractive to regulated financial institutions.

The combination of robust credit backing, tax incentives, and market liquidity continues to make Federal Government bonds the cornerstone of Nigeria’s fixed-income market. With this reopening, the DMO is reinforcing investor confidence while supporting fiscal sustainability through prudent domestic debt issuance.

Nigeria’s oil and gas sector continues to reflect a growing divide in debt management practices among listed firms. While some companies have adopted strategic use of leverage to finance expansion, others remain weighed down by heavy borrowings and weak balance sheets.

Data from the first half of 2025 shows that several key players are operating under significant debt burdens, underscoring the risks of excessive borrowing in a high-interest-rate environment.

Among the industry’s most indebted companies are Oando Plc, Seplat Energy Plc, and Eterna Plc, each representing different approaches to debt utilization and capital structure discipline.

While a few firms have managed to use borrowings to sustain liquidity and fund growth, others are struggling with repayment obligations and declining solvency, highlighting the sector’s uneven financial resilience.

Eterna Plc

Eterna Plc ranks among the most indebted oil and gas companies in Nigeria. As of June 2025, the company reported a current debt of ₦29.28 billion and non-current debt of ₦10.13 billion, totaling ₦39.41 billion in borrowings — a 17.6% year-on-year improvement.

Despite the reduction, Eterna’s balance sheet remains highly leveraged. The company’s cash and cash equivalents stood at only ₦2.45 billion, leaving a net debt position of ₦36.97 billion. This thin liquidity profile exposes the company to refinancing and operational pressures.

Eterna’s debt ratio of 0.63x shows that 63% of its assets are financed by debt, while its debt-to-equity ratio of 11.52x and debt-to-capital ratio of 0.92x underline a capital structure heavily reliant on borrowings. Its debt-to-EBITDA ratio of 12.61x signals limited earnings capacity to cover debt, though an interest coverage ratio of 2.99x indicates that the firm still generates enough operating income to meet short-term interest obligations.

Overall, Eterna’s high gearing and weak liquidity position highlight the need for stronger earnings performance, prudent cost control, and improved debt management strategies to enhance financial stability in the medium term.

*Only Eterna’s full numeric breakdown was provided in the source.

Key Takeaways

• These five companies reflect very different levels of balance-sheet health: from strategic leveraging to clear solvency pressure.

• While debt can support expansion and liquidity, high gearing and limited earnings cover (especially for Eterna) suggest elevated risk in a high interest-rate environment.

• For investors and analysts in the Nigerian oil & gas space, disciplined capital structure management remains a critical factor for long-term stability and performance.

A few years ago, a Nigerian man visiting the United States shared an experience that perfectly captures the contrast between wealth and comfort in two very different worlds. After arriving at a friend’s home in the U.S., they were hungry after a long trip but quickly realized there was no cook, no errand boy, and no one to help. His friend sighed, “This is why I miss Naija.”

Despite living in America for nearly two decades and running a successful business, his friend admitted that life there lacked the everyday luxuries that were easy to enjoy back home — affordable domestic staff, help on demand, and a lifestyle built on convenience rather than systems.

Comfort vs. Structure

In Nigeria, someone earning ₦1.5 million monthly (roughly $1,000) lives comfortably by local standards. That income can cover rent, groceries, a driver, and even private schooling. Yet in the United States, that same $1,000 barely stretches through a week. It’s equivalent to a part-time income, far below the national minimum wage, barely enough to pay for fuel and basic food items.

This sharp difference reflects how societies are structured. In the U.S., wages are higher because workers are paid fairly for their time, and the system ensures that essential services — health, transport, education, and power — are built into daily life. In Nigeria, those same systems are weak, forcing individuals to self-finance their comfort. Generators replace power grids, private schools fill in for weak education systems, and boreholes stand in for unreliable water supply.

The True Cost of Cheap Labour

Nigeria’s affordability is both a blessing and a curse. A driver might earn ₦80,000 monthly, a nanny ₦50,000, and a plumber ₦20,000 per job — figures that make life easy for the middle class but highlight a deeper economic imbalance. The country’s comfort is often built on the back of low-paid labour. This means that while middle-class Nigerians enjoy conveniences unavailable to many Americans, the system remains fragile and unequal.

Meanwhile, in the U.S., manual workers like electricians and plumbers can earn far more. NVIDIA’s CEO, Jensen Huang, once noted that such skilled professionals are becoming modern-day millionaires — a reflection of how valuable technical labour has become in economies that reward productivity.

Wealth Without Systems

The paradox becomes clear: Nigeria offers comfort without infrastructure, while the U.S. provides structure without personal luxury. A ₦1.5 million earner may appear rich but must pay privately for every essential service. Conversely, an American living on $1,000 might not own much, but they benefit from consistent systems — steady power, reliable healthcare, and a functioning society.

When viewed through this lens, wealth becomes relative. The Nigerian’s lifestyle looks richer, but the American’s stability represents a deeper form of wealth — one based on dependable institutions rather than personal spending power.

Building Balance Between Comfort and Functionality

The recent push to raise Nigeria’s minimum wage is a step forward, but inflation and weak productivity continue to undermine real progress. What Nigeria needs is not just higher pay but a shift from comfort built on inequality to prosperity driven by productivity.

True development would mean a country where comfort and structure coexist — where people enjoy good living not because labour is cheap, but because systems work. Until then, the Nigerian earning ₦1.5 million may appear wealthier, but the American earning $1,000 arguably lives better.

The Federal Government has disbursed ₦32.9 billion to primary healthcare facilities across all wards in Nigeria under the Basic Health Care Provision Fund (BHCPF), marking the third round of funding in 2025.

The announcement was made by the Coordinating Minister of Health and Social Welfare, Prof. Muhammed Ali Pate, in a statement titled “The Red Letter” released on October 22, 2025. He confirmed that the funds have already begun reaching the commercial bank accounts of primary healthcare centres nationwide.

According to Pate, the BHCPF is a key initiative aimed at strengthening community-level health services by directly funding facilities rather than centralizing resources in Abuja.

“This money is not sitting in Abuja. It has already begun its journey into the commercial bank accounts of primary health care facilities in every ward across Nigeria,” he said.

Strengthening transparency and community participation

Pate emphasized that the BHCPF reflects the government’s renewed effort to improve healthcare delivery by empowering local health institutions to plan and manage resources transparently in collaboration with their communities.

He called on ward health committees, traditional rulers, women and youth groups, and faith-based organizations to play active roles in monitoring how the funds are utilized.

“Without community participation, the full potential of these funds will not be realized,” he warned, urging citizens to hold their local health centres accountable for visible improvements such as better infrastructure, safe deliveries, and improved access to essential medicines.

About the Basic Health Care Provision Fund (BHCPF)

Established under the National Health Act of 2014, the BHCPF aims to expand access to quality healthcare, particularly for poor and vulnerable Nigerians.

The fund is financed by at least 1% of the Federal Government’s Consolidated Revenue Fund and contributions from development partners. It supports essential health services, strengthens primary healthcare systems, and provides emergency medical care.

The programme is jointly managed by the National Health Insurance Authority (NHIA), the National Primary Health Care Development Agency (NPHCDA), and the National Emergency Medical Treatment Committee, ensuring equitable delivery of medical supplies, affordable care, and ambulance services across the country.

Eligible Nigerians can access these benefits by enrolling through their State Social Health Insurance Authorities.

A new report from the African Private Capital Association (AVCA) has revealed that 65% of Ghanaian pension funds plan to increase their investments in private equity over the next five years, signaling a major shift in how institutional investors allocate capital in one of Africa’s most dynamic pension markets.

The report, titled “Pension Funds and Private Capital in Ghana,” was produced in collaboration with the Chamber of Corporate Trustees of Ghana and British International Investment (BII) through the Ghana Investment Support Programme (GHISP). It provides the most comprehensive analysis to date of how domestic pension assets can be mobilized to drive sustainable, long-term growth in Ghana’s real economy.

Policy Push Toward Private Capital

The growing momentum follows a May 2025 policy directive from the Ghanaian government, which mandates pension funds and insurance firms to allocate at least 5% of their assets to private equity and venture capital by 2026. The move aims to unlock domestic pools of capital and direct them toward productive sectors such as agriculture, manufacturing, and technology.

“This mirrors a broader shift across Africa, where governments are enacting policies to channel domestic savings into productive investments at home and across borders,” said Abi Mustapha-Maduakor, CEO of AVCA. “With these foundations in place, Ghana’s pension system can become a catalyst for long-term, sustainable growth.”

Untapped Potential in Ghana’s Pension Industry

Ghana’s pension industry has witnessed impressive growth, with total assets under management reaching GHS 86.4 billion (US$6.2 billion) by the end of 2024. However, the report points to significant underutilization of private market opportunities.

Currently, Ghana deploys just 4.4% of its 25% regulatory limit for alternative investments. In contrast, Nigeria utilizes 34% of its 5% cap, while South Africa allocates around 8% under a 15% ceiling.

The disparity, AVCA noted, highlights the potential for Ghanaian pension funds to play a greater role in financing infrastructure, innovation, and industrial development.

Sectors and Asset Classes in Focus

According to the report, Ghanaian pension funds are particularly interested in sectors such as healthcare (55%), agribusiness (45%), and technology (40%). In terms of asset classes, 38% of respondents expressed preference for real assets like property and infrastructure, 24% favored private equity, and 19% showed interest in venture capital opportunities.

A growing number of funds are also pursuing risk-mitigation strategies. About 28% said they prefer investing through DFI-backed vehicles due to their de-risking features, while 22% favor co-investment models that provide shared oversight and due diligence.

Barriers to Deeper Participation

Despite growing appetite, several challenges continue to limit pension fund participation in private markets. These include:

• Regulatory hurdles, such as lengthy and complex licensing procedures.

• Limited investable pipelines within the domestic market.

• Data and transparency gaps, which make performance benchmarking difficult.

• Limited fund manager relationships, with 89% of pension funds having engaged with fewer than three managers in the past year.

Strategic Priorities for Reform

To unlock this potential, the report outlines four key action areas:

1. Enhancing transparency and engagement between pension funds and fund managers.

2. Building institutional capacity through training and pooled investment vehicles.

3. Expanding blended finance and co-investment structures to reduce risk.

4. Advancing regulatory reforms to recognize Limited Partnerships and streamline fund approvals.

“Ghana’s pension funds are at an inflection point,” Mustapha-Maduakor said. “The data highlights both the scale of available domestic capital and the structural barriers that still hold it back. Overcoming these will require collaboration, capacity building, and regulatory clarity.”

The report is part of AVCA’s Knowledge Exchange Initiative (KEI)—a year-long capacity-building program launched with BII’s support through GHISP—to deepen local participation in Africa’s private markets. AVCA projects that Ghana’s pension allocations to private capital will rise steadily over the next five years, positioning the country as a regional leader in pension-led private investment.

Nigeria’s Pension Industry Maintains Growth Momentum

Meanwhile, Nigeria’s pension fund industry recorded steady growth in August 2025, with total assets under management rising to N25.90 trillion, up from N25.80 trillion in July—representing a N97.88 billion increase.

According to the National Pension Commission (PenCom), the sector posted a 0.38% month-on-month gain and a 22.5% year-on-year rise from N21.13 trillion in August 2024. The growth was largely driven by new contributions and asset revaluation gains.

Government securities remain the industry’s strongest pillar, expanding from N14.31 trillion in January 2025 to N15.82 trillion by August.

Ghana’s Economy Shows Signs of Stability

Adding to investor optimism, Ghana’s economy has shown signs of stabilization, with inflation dropping to single digits for the first time since 2021. The Ghana Statistical Service reported a year-on-year inflation rate of 9.4% in September 2025, down from 11.5% in August, marking the ninth consecutive month of decline.

The slowdown was driven by easing food inflation (down to 11%) and a slight moderation in non-food inflation (8.2%), underscoring the country’s improving macroeconomic outlook.

With falling inflation, stronger fiscal discipline, and pension reforms aimed at unlocking local capital, analysts believe Ghana is entering a new phase where domestic savings could become a major engine for investment-led growth across West Africa.