The Debt Management Office (DMO) has unveiled two new federal government of Nigeria (FGN) savings bonds, available for subscription at N1,000 per unit.
This subscription offer will remain open for a span of four days, from August 7th to August 11th, 2023.
The initial bond offering comprises a two-year FGN savings bond maturing on August 16, 2025, carrying an annual interest rate of 9.634 percent.
Simultaneously, a second offering includes a three-year FGN savings bond set to mature on August 16, 2026, featuring an interest rate of 10.634 percent per annum.
To participate, investors must commit a minimum of N5,000, with multiples of N1,000 afterward. The upper limit for subscription is N50 million.
Interest payouts will occur on a quarterly basis, with the principal repayment scheduled for the bond’s maturity date.
The DMO emphasises that FGN savings bonds qualify as valid investment securities under the Trustee Investment Act.
Furthermore, they fulfill the criteria of government securities, which exempts pension funds and other investors from taxation as outlined in the Company Income tax Act and Personal Income Tax Act.
Additionally, these bonds are considered liquid assets for bank liquidity ratio calculations.
The FGN savings bonds, accessible on the Nigerian Exchange Limited (NGX), are fully backed by the Nigerian government’s credit and are secured against the nation’s general assets.
Individuals interested in participating can reach out to stock brokerage firms acting as authorized agents on behalf of the DMO. The bonds are also listed on the NGX platform.
