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The Debt Management Office (DMO) has announced the availability of two Federal Government of Nigeria (FGN) savings bonds for subscription, offering attractive interest rates of 17.2% and 18.2% respectively.
In a statement released yesterday in Abuja, the DMO detailed that the first bond is a two-year FGN savings bond, maturing on September 11, 2026, with an annual interest rate of 17.202%. The second bond is a three-year FGN savings bond, set to mature on September 11, 2027, with an annual interest rate of 18.202%.
The subscription period for these bonds opens on September 2, 2024, and closes on September 6, 2024. The settlement date for subscribers is September 11, 2024, with coupon payments scheduled quarterly on December 11, March 11, June 11, and September 11.
The bonds are available for purchase at N1,000 per unit, with a minimum subscription requirement of N5,000, and can be purchased in multiples of N1,000 thereafter, up to a maximum of N50 million.
“The interest is payable quarterly, and the principal amount will be repaid in full on the maturity date,” the DMO explained. The office also assured that these FGN savings bonds are fully backed by the credit and faith of the Federal Government of Nigeria, secured by the general assets of the nation.
Additionally, the DMO highlighted that these bonds qualify as securities for trustees under the Trustee Investment Act and are recognized as government securities under the Company Income Tax Act and Personal Income Tax Act, making them eligible for tax exemptions for pension funds and other investors.
Furthermore, the DMO noted that the bonds are listed on the Nigerian Exchange Limited and are considered liquid assets for banks, qualifying for liquidity ratio calculations.
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