The Debt Management Office (DMO) of Nigeria has introduced two new Federal Government of Nigeria (FGN) Savings Bonds, available for subscription at a starting price of ₦1,000 per unit. This initiative aims to provide Nigerian investors with secure and attractive investment opportunities.
Bond Offerings and Interest Rates
The DMO announced the availability of two bond options:
- A two-year FGN Savings Bond maturing on January 22, 2027, offering an annual interest rate of 17.23%.
- A three-year FGN Savings Bond maturing on January 22, 2028, with an annual interest rate of 18.23%.
These bonds are designed to cater to a broad spectrum of investors, from individuals to institutional entities.
Subscription Details
Investors can subscribe to these bonds from January 13 to January 17, 2025. The settlement date is set for January 22, 2025. Interest payments will be disbursed quarterly on April 22, July 22, October 22, and January 22.
The bonds are priced at ₦1,000 per unit, with a minimum subscription of ₦5,000 and in multiples of ₦1,000 thereafter, up to a maximum of ₦50 million.
Security and Tax Benefits
These FGN Savings Bonds are backed by the full faith and credit of the Federal Government of Nigeria, ensuring a secure investment. Additionally, they qualify for tax exemptions under the Company Income Tax Act and Personal Income Tax Act, making them attractive to trustees, pension funds, and other institutional investors.
How to Invest
Interested investors should contact their stockbrokers or visit the DMO’s official website for more information on the subscription process. The bonds are also listed on the Nigerian Exchange Limited, providing liquidity for investors who may wish to trade them before maturity.
Conclusion
The launch of these savings bonds reflects the Nigerian government’s commitment to promoting financial inclusion and providing citizens with secure investment options. With attractive interest rates and government backing, these bonds offer a viable avenue for Nigerians to grow their wealth.
