On Monday, the Debt Management Office (DMO) issued two new savings bond offers on behalf of the Federal Government of Nigeria (FGN) for public subscription. The first offer is a two-year FGN savings bond maturing on November 15, 2025, with an annual interest rate of 12.464 percent. The second offer is a three-year FGN savings bond set to mature on November 15, 2026, featuring an annual interest rate of 13.464 percent.
These bonds are available at a unit price of N1,000, with a minimum subscription of N5,000 and increments of N1,000 thereafter, up to a maximum subscription of N50 million. The subscription period opens on November 6 and closes on November 10, with the settlement date scheduled for November 15. Interest payments occur quarterly on February 15, May 15, August 15, and November 15, with the bonds reaching maturity on the specified date.
The DMO emphasized that the FGN savings bonds are secured by the full faith and credit of Nigeria, supported by the country’s general assets. They are considered suitable investment options for trustees under the Trustee Investment Act, and they qualify as government securities as defined by the Company Income Tax Act and Personal Income Tax Act, making them eligible for tax exemption for pension funds and various other investors. Additionally, these bonds are listed on the Nigerian Exchange Limited and qualify as liquid assets used in calculating liquidity ratios for banks.
Source: National News Agency of Nigeria (NAN)
