The Debt Management Office (DMO), has offered two Federal Government of Nigeria (FGN) Savings Bonds at N1,000 per unit for the month of April this year
In a notice on the offer on its website, the DMO indicated that the first offer comprised a two-year FGN Savings Bond due in April 12, 2025 at an interest rate of 10.033 per cent per annum while the second offer is a three-year FGN Savings Bond due in April 12, 2026 at 11.033 per cent per annum interest rate.
It stated: “The offer opens on April 3 and closes on April 7.
“Minimum subscription is N5,000 with multiple of N1,000 thereafter, and subject to a maximum subscription of N50 million.
“Interest is payable quarterly while bullet repayment (principal sum) is on maturity, ’the DMO said.
According to the Office the FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act.
On the bonds’ investment assurance, DMO stated: “They also qualify as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds.
“They are listed on the Nigerian Stock Exchange Limited and qualify as a liquid asset for liquidity ratio calculation for banks.
“They are backed by the full faith and credit of the FGN and charged upon the general assets of the country”, it added.
Over the past years, the Federal Government has been issuing bonds and other debt instruments for both domestic and international investors as part of its fiscal strategies to bridge yearly budget deficits.
Latest report by the National Bureau of Statistics (NBS) showed that Nigeria’s total public debt stock consisting of domestic and external debt stocks of the Federal Government of Nigeria, the 36 State Governments and the Federal Capital Territory hit N46.25 trillion or 103.11 billion dollars inn Q4 2022.
The Bureau gave these figures in its ‘Nigerian Domestic and Foreign Debt Report for Q4 2022’ released last Friday, 31st March, 2023
