DMO Offers FGN Savings Bonds at N1,000 Per Unit

The Debt Management Office (DMO), on behalf of the Federal Government, has announced the offer of two FGN Savings Bonds for subscription at N1,000 per unit. The first is a two-year bond due on October 14, 2028, with an annual interest rate of 13.071 per cent, while the second is a three-year bond due on October 14, 2029, with an interest rate of 14.071 per cent per annum. According to the DMO, the offer opened on October 5 and will close on October 9, with settlement scheduled for October 14. Coupon payments will be made quarterly on January 14, April 14, July 14 and October 14. The bonds require a minimum subscription of N5,000, with additional subscriptions allowed in multiples of N1,000, up to a maximum of N50 million. The DMO said interest is payable quarterly, while the principal will be repaid in full on the maturity date.

The FGN Savings Bonds are backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria. The DMO said the securities qualify as investments under the Trustee Investment Act and as government securities under the Company Income Tax Act and Personal Income Tax Act, providing tax exemptions for pension funds and other qualifying investors. The bonds are also listed on the Nigerian Exchange Limited and qualify as liquid assets for banks when calculating liquidity ratios. FGN Savings Bonds are risk-free debt securities issued by the DMO on behalf of the Federal Government and are designed mainly for retail investors, allowing individuals to earn guaranteed returns while lending to the government for national development.

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