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Patience Oniha, DMO DG

DMO offers 2 FGN savings bonds for subscription

By Kadiri Abdulrahman

Abuja, March 6, 2023

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

According to the DMO, the first offer is a two-year FGN Savings Bond due in March 15, 2025, at interest rate of 465 per cent per annum.

The second offer is a three-year FGN Savings Bond due in March 25, 2026, at interest rate of 10.465 per cent per annum.

“They are offered at N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

“Interest is payable quarterly, while bullet repayment (principal sum) is made on maturity,” the DMO said.

It said that FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act.

“They 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 other investors.

“They are listed on the Nigerian Stock Exchange Limited and FMDQ Securities Exchange Limited, and they qualify as liquid assets for liquidity ratio calculation for banks,” it said.

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

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