Nigeria's domestic debt market witnessed a significant surge in activity during November 2025, driven by robust investor appetite for government securities. The Debt Management Office (DMO) successfully sold treasury bills worth a staggering N1.6 trillion, marking a sharp increase in federal borrowing activities.
Record-Breaking Month for Sovereign Debt Sales
According to the latest Financial Markets Monthly Report from the FMDQ Securities Exchange, the November 2025 treasury bill sales represented a substantial 59.54% month-on-month increase. This translates to an additional N610.67 billion compared to the N1.02 trillion sold in October 2025.
The demand for Federal Government of Nigeria (FGN) Bonds also rose dramatically. Issuances jumped by 86.1% to reach N589.52 billion in November, up from N316.77 billion in the previous month. The report confirmed that investor confidence remained high, with treasury bills oversubscribed by 82.88% and FGN Bonds oversubscribed by 42.88%.
Central Bank's OMO Operations and Mixed Corporate Activity
The Central Bank of Nigeria (CBN) mirrored this trend in the money market. It sold Open Market Operation (OMO) Bills valued at N633.85 billion in November 2025. This figure shows an astronomical increase from the mere N6.63 billion sold in October, highlighting a major shift in liquidity management. Investor appetite for these instruments was exceptionally strong, evidenced by an oversubscription rate of 244.06%.
Activity in the non-sovereign segment presented a different picture. The FMDQ Exchange reported that no new corporate bonds were listed in November 2025. Furthermore, the redemption of N25 billion in maturing bonds caused the total outstanding value of non-sovereign bonds to decline by 1.14% to N2.16 trillion.
The commercial paper market also experienced a downturn. The total value of quoted papers fell by 59.05% month-on-month to N21.71 billion. Although six new commercial papers were quoted, with three coming from the energy sector, significant maturities worth N311.30 billion led to a 24.81% decline in the total outstanding value, which settled at N877.41 billion.
Naira Gains Ground in Foreign Exchange Market
Amidst the bustling debt market activity, the foreign exchange market saw modest improvements. The Nigerian Naira appreciated against the US Dollar in November 2025. The average spot exchange rate strengthened by 0.99%, gaining N14.50 to close at N1,445.29/$1 compared to N1,459.79/$1 in October.
Exchange rate volatility also decreased during the period. The Naira traded within a narrower band, between N1,437.50 and N1,459.95 per dollar. This contrasts with the wider range of N1,427 to N1,474 per dollar observed in October 2025, indicating a period of relative stability for the currency.
