DMO issues 2 FGN savings bonds for subscription at N1,000 per unit

By Kadiri Abdulrahman

Abuja, Nov. 7, 2022

The Debt Management Office (DMO) has announced issuance of two Federal Government of Nigeria (FGN) Savings Bonds for subscription at N1,000 per unit.

According to a statement by the DMO via its website on Monday, the first offer is a two-year FGN Savings Bond, due in Nov. 16, 2024 at interest rate of 12.492 per cent per annum.

The second offer is a three-year FGN Savings Bond, due in Nov. 16, 2025, at 13.492 per cent interest rate per annum.

“The offer is subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50million.

“Interest is payable quarterly, while bullet payment (principal sum) will be made on maturity.

“Opening date is Nov. 7, closing date is Nov. 11, and settlement date is Nov. 16, while coupon payment dates are Feb. 16, May16, Aug. 16 and Nov. 16,” it said.

It added that the savings bonds were backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustee Investment Act.

“They also qualify as government securities within the meaning of Company Income Tax Act (CITA), and Personal Income Tax Act (PITA), for tax exemption for pension funds amongst others,” said the DMO.

It further stated that the bonds were liquid assets for liquidity ratio calculation for banks and were listed on the Nigerian Stock Exchange.