In a statement, the Debt Management Office (DMO) announced that the first offer is a two-year FGN savings bond, maturing on November 13, 2026, with an interest rate of 17.440% per annum.
Interest payments are made quarterly, with the principal amount due on the maturity date.
The second offer is a three-year FGN savings bond due November 13, 2027, at an interest rate of 18.440% per annum.
Details of the savings bond
The opening date for the offer is November 4, 2024, the closing date is Friday, November 8, 2024, and the settlement date is November 13, 2024, while coupon settlement dates are February 13, May 13, August 13, and November 13.
Part of the DMO statement reads: “They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 after that, subject to a maximum subscription of N50 million.
“Interest is payable quarterly while bullet repayment (principal sum) is on the maturity date.”
DMO advises investors
The FGN savings bonds are fully backed by the credit and assets of the Federal Government of Nigeria (FGN).
Punch reports these bonds are eligible securities for trustee investments under the Trustee Investment Act.
They also qualify as government securities under the Company Income Tax Act and the Personal Income Tax Act, offering pension funds and other investors tax exemptions.
Additionally, the bonds are listed on the Nigerian Exchange Limited and count as liquid assets for banks’ liquidity ratio calculations.
The DMO advises interested investors to contact one of the appointed stockbroking firms for further information.
