The Debt Management Office (DMO) has announced two Federal Government of Nigeria (FGN) savings bonds for subscription, its first bond issuance for 2023.
The announcement was made on Monday, January 2, according to a statement seen by Nairametrics.
Details of the offers: According to the statement, one is a two-year FGN savings bond due on January 11, 2025, at the interest rate of 9.600% per annum.
The other is a three-year FGN savings bond due on January 11, 2026, at the interest rate of 10.600% per annum.
The DMO said the opening date would be January 3, the closing date would be January 6, and the settlement date, be January 11, while coupon payment dates would be April 11, July 11, October 11 and January 11, 2024.
- “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 on maturity,” the statement added.
The DMO said that FGN savings bonds qualified as securities in which trustees could invest under the Trustee Investment Act.
- “They also qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds.
- “They are listed on the Nigerian Stock Exchange Limited and qualify as liquid asset for liquidity ratio calculation for banks,” it said.
It noted that the bonds were backed by the full faith and credit of the FGN and charged upon the general assets of the country.
We are interested please oh
How do I invest in FGN savings bond?
There seems to be no transparency in the bonds issuance by the DMO. I asked them a simple question about what I should receive at date of maturity following my subscription to one of the bonds which has lost three quarters of the original value at capital market. There was no response and it caused me some fear and confusion with regard to my investments.
The bonds are loans which should be paid back at date of maturity. It should not be subjected to fluctuations in the capital market. Thanks
YOUR DIVIDEND IS PAID QUARTERLY AND YOUR CAPITAL REMAINED UNCHANGED NO MATTER THE FLUCTUATION OF MARKET