The Debt Management Office acting on behalf of the Federal Government, has invited the public to subscribe to two FGN savings bonds priced at ₦1,000 per unit.

In a statement issued in Abuja on Tuesday, the DMO said the first offer is a two-year FGN bond maturing on Oct. 14, 2028, with an interest rate of 13.071 per cent per annum.

The second is a three-year FGN bond maturing on Oct. 14, 2029, with an interest rate of 14.071 per cent per annum.

According to the DMO, the offer opens on Oct. 5 and closes on Oct. 9, while settlement is scheduled for Oct. 14. Coupon payments will be made on Jan. 14, April 14, July 14 and Oct. 14.

“The FGN savings bonds are offered at ₦1,000 per unit subject to a minimum subscription of ₦5,000 and in multiples of ₦1,000 thereafter, subject to a maximum subscription of ₦50 million.

“Interest is payable quarterly, while bullet repayment is on the maturity date,” the DMO said.

The agency explained that FGN bonds, like all other Federal Government securities, are 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 qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for exemption for pension funds, amongst other investors.

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

The News Agency of Nigeria reported that FGN savings bonds are risk-free debt securities issued by the DMO on behalf of the Federal Government of Nigeria.

The bonds are designed specifically for retail investors, allowing individuals to earn guaranteed returns while lending money to the government for national development.