The Debt Management Office has offered two Federal Government of Nigeria savings bonds for subscription at N1,000 per unit.
The initial offering is a two-year FGN savings bond with an interest rate of 17.373 percent annually that is due on August 21, 2026, according to a statement released by DMO on its website on Monday.
A three-year FGN savings bond with an interest rate of 18.373 percent per year is being offered as the second offer. It is due on August 21, 2027.
The offer’s starting and ending dates are August 12, August 16, and August 21, respectively. The coupon settlement dates are November 21, February 21, May 21, and August 21.
“They are available for N1,000 per unit, with a N5,000 minimum subscription and N1,000 increments thereafter, up to a N50 million maximum subscription.
According to DMO, “interest is due on a quarterly basis, and the principal amount is due on the maturity date.”
According to the DMO, Interest is payable quarterly while bullet repayment (principal sum) is on the maturity date
It assured that FGN savings bonds are backed by the full faith and credit of the FGN, and charged upon the general assets of Nigeria.
“They qualify as securities where trustees can invest under the Trustee Investment Act.
“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.
“They are listed on the Nigerian Exchange Limited and qualify as liquid assets for liquidity ratio calculation for banks.
According to the Debt Management Office, the minimum amount that can be invested in the Savings Bond is N5,000 while a maximum of N50m can be invested.
The Debt Management Office also noted that interested investors should contact appointed stockbroking firms provided by the DMO.
