The Debt Management Office (DMO) has announced the availability of two fresh Federal Government of Nigeria (FGN) Savings Bonds for subscription at N1,000 per unit.
The first offer is a two-year FGN savings bond with a maturity date of August 16, 2025, offering an attractive interest rate of 9.634 per cent per annum.
The second offer is a three-year FGN Savings Bond, due on August 16, 2026, providing an even higher interest rate of 10.634 per cent per annum.
Potential investors should note that the minimum subscription amount is N5,000, and they can invest in multiples of N1,000 thereafter, with a maximum subscription limit of N50 million.
The subscription for these bonds will open on August 7 and close on August 11. The settlement date for successful subscribers will be on August 16, and coupon payments will be made on November 16, February 16, May 16, and August 16.
The interest on these FGN savings bonds will be paid quarterly, while the principal sum will be repaid on the maturity date.
It’s important to highlight that FGN savings bonds hold several benefits for investors. They qualify as securities in which trustees can invest under the Trustee Investment Act and are considered government securities under the Company Income Tax Act and Personal Income Tax Act, making them eligible for tax exemptions for pension funds and other investors.
Additionally, these bonds serve as a liquid asset, contributing to the liquidity ratio calculation for banks.
Investors can rest assured that the FGN savings bond listed on the Nigerian Exchange Limited is backed by the full faith and credit of the Federal Government of Nigeria and is charged upon the general assets of the country.
This offering presents an opportunity for individuals and institutions to invest in secure and reliable financial instruments while earning competitive returns. Potential investors are encouraged to take advantage of this limited-time opportunity to subscribe to the FGN savings bonds and participate in the country’s economic growth and development.
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