DMO Lists 2 FGN Savings Bonds For Purchase In February

DMO Seeks Investors For FG's July Savings Bond
DMO Seeks Investors For FG's July Savings Bond

Two Federal Government of Nigeria (FGN) savings bonds are available for subscription at N1,000 per unit, according to the Debt Management Office (DMO).

The DMO reports that the first but is a nine-year FGN savings bond with an interest rate of 12.75 percent per year that is due on February 14, 2025. The second offering is a 13.75 percent annual yield, three-year FGN savings bond that is due on February 14, 2026.

The coupon payment dates are May 14, Aug. 14, Nov. 14, and Feb. 14. The opening and closing dates are February 4 and 9, respectively, and the settlement date is February 14.

The debt office declared that the bonds would be available for N1,000 per, with a N5,000 minimum subscription and N1,000 increments after that, subject to a maximum subscription of N50 million.

“Interest is payable quarterly while bullet repayment is on maturity date,” the DMO said.

It assured that FGN savings bonds, like all other FGN securities, are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustees Investment Act.

“Qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension fund amongst other investors.

“Listed in the Nigerian Stock Exchange Limited, and qualify as liquid asset for liquidity ratio calculation for banks,” it said.

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