The Debt Management Office (DMO) has unveiled two Federal Government of Nigeria (FGN) savings bonds for December, offering attractive interest rates to investors.
The two-year bond, maturing on December 11, 2026, comes with a 17.483% annual interest rate, while the three-year bond, maturing on December 11, 2027, offers an 18.483% rate.
Key Subscription Details
- Opening Date: December 2
- Closing Date: December 6
- Settlement Date: December 11
- Coupon Payment Dates: March 11, June 11, September 11, and December 11
The bonds are priced at ₦1,000 per unit, with a minimum subscription of ₦5,000 and increments of ₦1,000 up to a maximum of ₦50 million. Quarterly interest payments will be made, with the principal repaid in full upon maturity.
Investment Benefits
The DMO emphasised that the bonds are backed by the full faith and credit of the Federal Government, qualifying them as secure investments under the Trustee Investment Act. They are also tax-exempt for pension funds and other investors under the Company Income Tax Act and Personal Income Tax Act.
Listed on the Nigerian Stock Exchange, the bonds also count as liquid assets for banks when calculating liquidity ratios, further enhancing their appeal.
Credit: NAN (Text Excluding Headline)
