Hitherto, a huge percentage of the Nigeria's domestic debt instruments were structured into Treasury Bills with maturities of 91days and below; creating inconsistencies and irregularities in the federal government's borrowing costs. The DMO, in a bid to restructure the Federal Government of Nigeria’s deficit funding from shorter to longer tenored borrowing instruments, improve and lengthen the yield curve in the domestic money markets, and to encourage long-term savings, introduced the sale of Federal Government of Nigeria ("FGN Bonds") Bonds in October 2003.
Prior to this, a substantial amount of Nigeria's domestic debt instruments were packaged into Treasury Bills with maturity periods of 91 days or less; causing discrepancies and irregularities in the federal government's borrowing expenses. The DMO sought to reorganize the Federal Government of Nigeria’s deficit funding from shorter-term to longer-term borrowing instruments, enhance and extend the yield curve in the domestic money markets, and stimulate long-term savings by launching the sale of Federal Government of Nigeria ("FGN Bonds") in October 2003.