Investment: Nigerian Government offers 2 savings bonds for subscription at N1,000 per unit

*The Federal Government announces the FGN bonds are being offered at N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to appropriate maximum subscription of N50 million

Isola Moses | ConsumerConnect

The Nigerian Government, through the Debt Management Office (DMO) has offered two FGN savings bonds at N1,000 per unit for subscribers.

The DMO, which disclosed the development in a statement, said the first offer is a two-year FGN savings bond due on February 11, 2028, at interest rate of 145.356 per annum.

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The second offer is a three-year savings bond due February 11, 2029, at 14.356 percent per annum.

The statement also noted the Office announced the opening date for the offer is February 2; closing date is February 6; settlement date is February 11.

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It further stated the coupon payment dates are May 11, August 11, November 11 and February 11.

The FGN bonds are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to appropriate maximum subscription of N50 million, said the DMO.

The Office explained: “Interests are payable quarterly, while bullet repayment (principal) sum is done on maturity date.”

According to the DMO, the FGN savings bonds are backed by the full faith and credit of the Federal Government of Nigeria.

The statement noted: “They qualify as securities in which trustees can invest under the Trustees Investors 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 Stock Exchange.”

The DMO added that the bonds as well qualify as liquid assets for liquidity ratio calculation for banks.

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