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DMO offers two savings bonds for subscription

The Federal Government has released two savings bonds, each priced at N1,000, for subscription, according to the Debt Management Office (DMO).

The first offer is a two-year FGN savings bond with an interest rate of 12.75 percent per year that is payable on February 14, 2025, according to the DMO.

While the second option is FGN savings bond with a maturity date of February 14, 2026 and an annual interest rate of 13.75 percent

The coupon payment dates are May 14, August 14, and November 14, and the opening and closing dates are February 4, February 9, and February 14, with the settlement date being February 14.

As per the announcement made by the debt office, the bonds can be purchased for N1,000 each, with a minimum subscription of N5,000 and in multiples of N1,000 after that.

“Interest is payable quarterly while bullet repayment is on the maturity date,” the DMO said.

It is guaranteed that FGN savings bonds are charged against Nigeria’s general assets and, like all other FGN securities, are backed by the full faith and credit of the federal government of Nigeria.

“They qualify as securities in which trustees can invest under the Trustees Investment Act.

“Qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.

“Listed in the Nigerian Stock Exchange Limited, and qualify as a liquid asset for liquidity ratio calculation for banks,” it said.