Abuja:The Debt Management Office (DMO) has announced the availability of two Federal Government of Nigeria (FGN) savings bonds for subscription, priced at N1,000 per unit.
According to News Agency of Nigeria, the first bond is a two-year bond with a maturity date of October 14, 2028, offering an interest rate of 13.071% per annum. The second option is a three-year bond, maturing on October 14, with an interest rate of 14.071% per annum.
The subscription period for these bonds begins on October 5 and closes on October 9, with settlement set for October 14. Interest payments are scheduled quarterly on January 14, April 14, July 14, and October 14.
The bonds require a minimum subscription of N5,000, increasing in multiples of N1,000, with a maximum subscription limit of N50 million. Interest payments are made quarterly, and the principal repayment is due at maturity.
These FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the country’s general assets. They qualify as trustee investments under the Trustee Investment Act and are exempt from the Company Income Tax Act and Personal Income Tax Act for pension funds and other investors. Additionally, they are listed on the Nigerian Exchange Ltd. and are considered liquid assets for banks’ liquidity ratio calculations.
FGN savings bonds offer a risk-free investment opportunity, designed specifically for retail investors, providing guaranteed returns while contributing to national development.