The Debt Management Office (DMO) of Nigeria has officially opened subscriptions for the Federal Government of Nigeria (FGN) savings bonds for September 2024.
According to a statement by the DMO, the subscription opened on September 2nd, and will close on September 6th. The bonds are being offered at notably high interest rates, with the two-year savings bond available at a rate of 17.202 percent, while the three-year savings bond offers an impressive 18.202 percent.
Priced at N1, 000 per bond unit, investors can subscribe with a minimum investment of N5, 000, with subsequent investments required in multiples of N1, 000. The maximum allowable subscription is capped at N50 million. Interest payments on these bonds will be made quarterly, with settlement scheduled for September 11, 2024.
The interest rate of 18.202 percent for the three-year bond marks one of the highest in recent years, reflecting the Central Bank of Nigeria’s strategy to curb inflation and stabilise the foreign exchange market by attracting foreign capital investments. This represents a significant increase from last September’s rate of 12.031 percent, showing a rise of 6.17 percentage points in just one year.
Recall, in August 2024, the federal government successfully raised N374.751 billion through its FGN bond auction, highlighting strong investor demand for long-term securities. The nine-year bond stood out, with subscriptions totalling N375.083 billion, far exceeding the N50 billion initially offered. The bond was eventually allotted N314.213 billion at a marginal rate of 21.50 percent, reflecting robust investor confidence.
