The Debt Management Office (DMO), representing the Nigerian federal government, is offering two Federal Government of Nigeria (FGN) Savings Bonds for subscription, available at ₦1,000 per unit.
The first bond is a two-year FGN Savings Bond, maturing on June 11, 2027, with an annual interest rate of 16.121 percent. The second bond is a three-year FGN Savings Bond, maturing on June 11, 2028, with an annual interest rate of 17.121 percent.
The offer period begins on June 2 and concludes on June 6, with the settlement date set for June 11. Coupon payments will occur quarterly on September 11, December 11, March 11, and June 11.
The bonds are available with a minimum subscription of ₦5,000, and in multiples of ₦1,000 thereafter, with a maximum subscription limit of ₦50 million.
The DMO assures investors that the FGN Savings Bonds are backed by the full faith and credit of the federal government and are secured by the general assets of Nigeria.
These bonds qualify as securities for investment under the Trustee Investment Act and are exempt from tax under the Company Income Tax Act and Personal Income Tax Act for pension funds and other investors.
Listed on the Nigerian Exchange Limited, these bonds also qualify as liquid assets for calculating banks' liquidity ratios. FGN Savings Bonds are considered one of the safest investment options in Nigeria due to their low default risk, offering fixed interest rates and predictable returns.
They are tailored for retail investors, providing accessible entry points compared to general FGN Bonds.
The funds raised from these bonds will be used by the government to finance various projects and address budget deficits.
