The Debt Management Office (DMO) has announced the availability of two new Federal Government of Nigeria (FGN) savings bonds, offering attractive interest rates for retail investors. The bonds are designed to provide a secure investment option with guaranteed quarterly interest payments and the return of the principal at maturity.
According to the DMO’s statement on Monday, the savings bond offer opened on September 2 and will close on September 6, with units priced at N1,000 each. The settlement date is set for September 11, with quarterly coupon payments scheduled for December 11, March 11, June 11, and September 11.
The first bond is a two-year savings bond with an interest rate of 17.202% per annum, maturing on September 11, 2026. The second bond is a three-year savings bond, offering an 18.202% annual interest rate and maturing on September 11, 2027.
These bonds are issued at N1,000 per unit, with a minimum subscription requirement of N5,000 and multiples of N1,000 thereafter. The maximum subscription allowed is N50 million. Interest payments will be made quarterly, while the principal sum will be repaid in full at maturity.
The DMO assured investors that these savings bonds are backed by the full faith and credit of the Federal Government of Nigeria, making them a secure investment. The bonds are also recognized as eligible securities under the Trustees Investment Act and are considered government securities for the purposes of the Company Income Tax Act and Personal Income Tax Act, making them suitable for pension funds and other investors.
Furthermore, these bonds are listed on the Nigerian Exchange Limited (NGX) and qualify as liquid assets for liquidity ratio calculations for banks, enhancing their appeal to a wide range of investors
