Abuja: The Debt Management Office (DMO) has announced the availability of two Federal Government of Nigeria (FGN) savings bonds for subscription, each priced at N1,000 per unit.
According to News Agency of Nigeria, the DMO detailed that the first offering is a two-year FGN Savings Bond with a maturity date of March 11, 2028, and an interest rate of 12.906 percent per annum. The second offering is a three-year FGN Savings Bond, set to mature on March 11, 2029, with an interest rate of 13.906 percent per annum.
The subscription period opens on March 2 and closes on March 6, with the settlement date scheduled for March 11. Coupon payments for these bonds will be made on June 11, September 11, December 11, and March 11. The DMO emphasized that these FGN bonds are supported by the full faith and credit of the Federal Government and are backed by Nigeria’s general assets.
Furthermore, these bonds are deemed suitable for investment by trustees under the Trustee Investment Act and qualify as government securities under the Company Income Tax Act and Personal Income Tax Act. This classification allows for tax exemption for pension funds, among others. The bonds are also listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.
Additionally, all FGN bonds are recognized as liquid assets for the calculation of liquidity ratios for banks, according to the DMO.