The Debt Management Office has announced that the federal government of Nigeria is offering bonds for May.
This was disclosed in a circular posted on the official X handle of DMO on Monday.
According to the announcement made by DMO, the bond offering comes in two categories. The 2 years and the 3 years saving bonds.
The statement reads in part “Debt Management Office, on behalf of the Federal Government of Nigeria, offers for subscription, and is authorized to receive applications for the federal government of Nigeria saving bonds.
“At the following interest rates, 2-year FGN saving bonds, due May 15, 2026: 17.407% per annum.
“3-year 2-year FGN saving bonds, due May 15, 2027: 18.407% per annum.”
The bond offering opens on Monday, May 6, 2024, and closes on May 10, 2024.
settlements dates are on May 15, 2024.
FGN saving Bonds are recognised as investment instruments for trustees under the Trustee Investment Act.
Moreover, given their classification as government securities, they enjoy tax exemption privileges by the stipulations outlined in both the Company Income Tax Act and the Personal Income Tax Act.
In April 2024, the DMO raised about N2.9 billion worth of Savings Bonds at a rate of 15.0978% and 16.097% for the 2-year and 3-year bonds respectively.
The decision om issue Saving Bonds at a rate of 18.407% mirrors the strategic direction pursued by both the Debt Management Office and the Central Bank of Nigeria in 2024, aimed at addressing inflation.
