Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Financial Literacy

This is a “back to school” explanation of FGN Bonds

Chacha Wabara by Chacha Wabara
July 10, 2017
in Financial Literacy, New to Investing
FGN Bonds
Share on FacebookShare on TwitterShare on Linkedin

The tough economic situation in the country has impacted on the private sector so much that laying people off is now so common that it could form a section in many newspapers. The chances of getting new jobs are becoming very slim as many of these companies are packing up.

Funny enough, the government is also suffering from cash problems. Which may be good news, if you are well-informed. The thing is that, unlike private companies that can up and leave at any moment, the government is stuck with its people.

Hence, they have to find money at all costs. This can present great opportunities to earn money from the government, especially by investing in government bonds. This article dissects the different Federal Government bonds and how to invest in them.

RelatedPosts

Where to invest your money today

Where to invest N100 million today

What is an FGN Bond?

FGN Bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN), usually issed by the Debt Management Office (DMO). It is simply a way of lending with interest to the Federal Government. It has now become more utilized source of FG revenue as a result of current economic challenges. Funds realized from these bonds are used by the FG To finance government fiscal deficits such as the N2.3 trillion 2017 deficit budget.

Why FGN Bonds?

The primary answer is that FGN Bonds are the safest investments you can ever have. It has a 0% risk, meaning investors are guaranteed of receiving both their capital and interest from the FG. You are probably wondering “Why isn’t everybody into it already?!!!” Well, until recently, investing in bonds wasn’t as lucrative as other investments such as the stock exchange, However, the economic meltdown as reduced the profitability of those other investments, while forcing the FG to lend at higher rates.

News continues after this ad


Types of FGN Bonds

There are different FGN Bonds available, some applicable to everybody, others to some select group of people. Some of them available to Nigerian residents are

  1. FGN Savings Bond: The latest initiative of the FG is meant to “develop a savings culture among Nigerians”. It is issued monthly in tenors of 2 and 3 years, while interest is paid quarterly (every 3 months). Minimum subscription amount is N5,000.00 with additions in multiples of N1,000.00, subject to a maximum of N50,000,000.00. A very good alternative for the Nigerian who has a steady income and wants to develop a savings reserve.
  2. FGN Sovereign Bonds: These are mid/long-term loans to the FG. In return, the FG pays a coupon (interest) and the full debt at the end of the period agreed (tenor). The FG usually sells bonds of 5-, 10-, and 20- year tenors. They are sold through auctions after bids a=have been placed by prospective buyers through Primary Dealer Market Makers (PDMMs). Subscription is a minimum of N10,000.00 and multiple of N1,000.00, thereafter. This is usually a good option for anyone who has a chunk of money now but wants to save it for a future project.

Get more bond articles

What you need to know about FGN Savings Bond

News continues after this ad


Beginners guide to investing in FGN Bonds

Related

Tags: ExplainersFGN BondsFGN Savings BondFixed Incomeinvestment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • BUAFOODS’ ascension to SWOOTs not enough to stop NGX from shedding N190 billion
    • Buhari again urges ASUU to call off strike, says it’s counterproductive
    • Seplat’s Non-Executive Director, Kazeem Raimi, sells equity stake amid controversy over Mobil assets’ acquisition

    Follow us on social media:

    Recent News

    BUA Cement Plc leads stocks worth over one trillion as market cap rises by N50.80 billion

    BUAFOODS’ ascension to SWOOTs not enough to stop NGX from shedding N190 billion

    August 12, 2022
    President Buhari felicitates with Sahara Group at 25

    Buhari again urges ASUU to call off strike, says it’s counterproductive

    August 12, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com