The Federal Government of Nigeria (FG) has launched April 2024 Savings Bonds worth N4.214 billion on the Nigerian Exchange (NGX) platform. Mr. Godstime Iwenekhai, Head of NGX’s Issuers Regulation Department, announced the listing in a market bulletin.
Iwenekhai announced the bond specifications, which included FGS April 2026 of 1.228 million units priced at N1.228 billion and a coupon rate of 17.046 percent.
He also stated that the FGS for April 2027, which is 2.986 million units, cost N2.986 billion and had an 18.046 percent coupon rate. According to him, the bonds are guaranteed by the federal government’s full confidence and credit and are charged against Nigeria’s general assets, as stated by the debt office.
“Trading license holders are hereby notified that the April 2024 issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on NGX on May 13.
“FGN Savings Bond is issued monthly in tenors of two and three years with quarterly payment of coupons (interest) at a rate predetermined and published by the DMO every month,” he said.
Iwenekhai explained that the retail savings bond product was introduced by the Debt Management Office (DMO) on behalf of the federal government in 2017. He noted that this is to democratise its activities in the bond market by making it easily accessible to Nigerians, to ensure continuous development of the domestic market.
According to him, the product was also aimed at bridging infrastructure deficit, which has been a constraint to economic growth.
