The Debt Management Office (DMO) has opened the Federal Government of Nigeria (FGN) Savings Bond for subscription, offering two attractive investment options for Nigerians.
The bond includes a 2-year FGN Savings Bond, due on December 11, 2026, with an interest rate of 17.483 per cent per annum, and a 3-year FGN Savings Bond, maturing on December 11, 2027, which offers an interest rate of 18.483 per cent per annum.
The subscription for these bonds begins on December 2, 2024, and closes on December 6, 2024, with the settlement date set for December 11, 2024. Interest payments will be made quarterly, on March 11, June 11, September 11, and December 11 each year.
Investors can purchase these bonds in units of ₦1,000 with a minimum subscription of ₦5,000, and a maximum of ₦50 million for the bond which will be redeemed in full at maturity, with interest paid quarterly during their life cycle.
The benefits for investors include usage as securities investible under the Trustee Investment Act, and also as government securities for tax exemption purposes under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them an attractive option for pension funds and other institutional investors.
The bonds are also listed on the Nigerian Stock Exchange and qualify as liquid assets for banks’ liquidity ratio calculations, further solidifying their status as secure, government-backed instruments.
The FGN Savings Bonds are backed by the full faith and credit of the Federal Government of Nigeria, ensuring a high level of security for investors. Interested parties are encouraged to contact stockbroking firms appointed as distribution agents by the DMO. For more information and to access the list of agents, investors can visit the official DMO website at www.dmo.gov.ng.
This offer provides an excellent opportunity for Nigerians to invest in government-backed bonds that offer competitive interest rates while supporting the continued development of the nation’s financial markets.
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