The Federal Government disclosed today that it raised N345.75 million from the sales of savings bond in March and April this year.
According to the details of the debt instrument transactions published on website of the Debt Management Office (DMO) , N151.82 million was allotted in March and N193.93 million in the April sales.
A further analysis of the results showed that N30.52 million was allotted at 10.74 per cent in 110 subscriptions to mature in March 2020, while N121.30 million to mature in March 2021 was allotted at 11.74 per cent in 164 successful bids.
Similarly, N64.92 million was allotted at 10.75 per cent with 144 successful subscriptions to mature in April 2021, while N129.01 million was allotted at 11.75 per cent in 177 successful bids to mature in April 2021.
The bond issuance is part of government’s programme targeted at the lower income earners to encourage savings and also earn more income (interest), compared to their savings accounts with banks.
The bonds are debt securities of the Federal Government, backed by its ‘full faith and credit’, and they are being issued for subscription with a view to helping government meet its funding obligations, particularly in narrowing its budget gaps.
With tenure of the bonds ranging between two to three years and a minimum size of investment of N5, 000 and maximum of N50 million, interests are to be paid at regular periods and principal repaid at maturity by the government.
The bond is issued by governments to deepen national savings culture, diversifying funding sources for the government and providing opportunity to all citizens without bias of their level of income and to contribute to national development.
In addition, the bond issuance also enables all citizens to participate and benefit from the favourable returns available in the capital market.