In October, the Debt Management Office (DMO) launched two Federal Government of Nigeria (FGN) bonds for subscription at N1,000 each. According to a DMO release, the initial offer is a two-year FGN savings bond due on October 16, 2026, with an annual interest rate of 17.084 percent.
According to the News Agency, the second offer is a three-year FGN savings bond maturing on October 16, 2027, with an annual interest rate of 18.084 percent.
The offers will open on October 7 and close on October 11, with a settlement date of October 16, and coupon payout dates of January 16, April 16, July 16, and October 16.
“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 on the maturity date,” DMO said.
The DMO also said that the savings bonds, like all other FGN securities were backed by the full faith and credit of the Federal Government.
“They qualify as securities in which trustees can invest under the Trustees Investment Act.
“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors.
“They are listed on the Nigerian Exchange Limited, and qualify as liquid asset for liquidity ratio calculation for banks,’’ it said.
