The Debt Management Office, DMO, has revealed that the Federal Government allotted N607.3 million in its June 2019 and 2020 savings bond sales, lower than the N790.85 million it allotted in May.
DMO said that N271.56 million was allotted at 13.18 per cent with 425 successful subscriptions to mature in June 2019.
It also said that N335.7 million was allotted at 14.18 per cent with 496 successful subscriptions to mature in June 2020.
This figure indicates a drop in allotments and subscriptions over the past months, NAN reports. The savings bond was introduced in March, targeted at the lower income earners to encourage savings and also earn more income (interest) compared to their savings accounts with banks.
In its first sale which was carried out in March, the Federal Government allotted N2.1 billion to 2,575 subscribers.
In April sales, it allotted N1.2 billion to 1,798 subscribers and in May it dropped to N790.85 million for 1,233 subscribers.
The savings bond issuance is expected to help finance the nation’s budget deficit. The bonds are debt securities (liabilities) of the Federal Government backed by its ‘full faith and credit’. Interests are to be paid at regular periods and principal repaid at maturity.
They have a tenure of between two to three years and a minimum size of investment of N5,000 and maximum of N50 million.
It is aimed at deepening national savings culture, diversifying funding sources for the government and providing opportunity to all citizens, irrespective of income level to contribute to national development.
