FGN savings bond up for N1000 per unit – DMO

Oluwanifemi Ojo
Oluwanifemi Ojo
Director-General, Debt Management Office, Patience Oniha

The Debt Management Office on Monday announced the offerings for subscription and authorized application for the savings bonds at N1,000 per unit to prospective bond holders.

This was according to an issued statement on the organisation’s official website on Monday 6, 2023.

A Federal Government Bond is considered the safest of all the investments in the domestic debt market. The holder is lending the FGN for a period of time, and the government has the obligation to pay the bank when it is time.

According to the statement on DMO’s website, there is a two-year that will be due at an interest of 10.043% per year by February 15, 2025. This is the first offer.

The second offer is a three-year FGN Savings Bond due February 15, 2026, at an interest rate of 11.043 per cent per annum.

According to a report by the News Agency of Nigeria, the offer opens on February 6, and closes February 10.

Meanwhile, the date for settlement is February 15, and the payment coupons will be in May 15, August 15, November 15 and February 15.

In the words of the DMO, “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.”

DMO added, “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 Limited and the FMDQ Securities Exchange Limited,” DMO said.

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