The Debt Management Office (DMO) has announced the opening of its October 2024 federal government savings bond offer, featuring two series with attractive interest rates.
The subscription window opened on October 7 and will close on October 11, 2024, providing investors with a unique opportunity to participate.
The first series consists of a two-year FGN savings bond, set to mature on October 16, 2026, with an annual interest rate of 17.084 percent. The second series is a three-year bond maturing on October 16, 2027, offering a higher interest rate of 18.084 percent per annum.
Both bonds are designed to generate regular income for investors, with interest payments scheduled quarterly on January 16, April 16, July 16, and October 16 each year. Investors can subscribe to these bonds with a minimum investment of N5, 000, and they are available in multiples of N1, 000, up to a maximum limit of N50 million.
The DMO has listed these bonds on the Nigerian Exchange, providing liquidity for investors who may wish to trade them before their maturity dates. Moreover, the bonds qualify as government securities under the Trustee Investment Act, making the bonds suitable options for trustees and pension funds. The bonds also meet the criteria for tax exemption under the Company Income Tax Act and the Personal Income Tax Act, further enhancing its appeal to various investors.
Backed by the full faith and credit of the federal government, these savings bonds are regarded as a secure investment choice. Interested investors are encouraged to contact authorized stockbroking firms for subscription details or visit the DMO’s website for more information.
In a previous offering in September 2024, the federal government’s savings bond attracted N2.75 billion in successful subscriptions, featuring an 18.20 per coupon rate for a bond maturing in September 2027. Additionally, a two-year bond maturing in September 2026 offered a 17.202 percent coupon rate, raising N843.58 million from 418 successful subscriptions during the same period.