The two Federal Government of Nigeria (FGN) Savings Bonds were made available for subscription on Monday by the Debt Management Office (DMO) at a price of N1,000 per bond. The initial offer, according to the DMO, is a two-year FGN Savings Bond with a March 15, 2025, maturity date and a 465 percent annual interest rate.
The second offer is a three-year, 10.465 percent-a-year FGN Savings Bond that matures on March 25, 2026.
“They are offered at N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
“Interest is payable quarterly, while bullet repayment (principal sum) is made on maturity,” the DMO said. It said that FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act.
“They qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds amongst other investors.
“They are listed on the Nigerian Stock Exchange Limited and FMDQ Securities Exchange Limited, and they qualify as liquid assets for liquidity ratio calculation for banks,” it said.
It added that they were backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of the country.