The Debt Management Office (DMO), on behalf of the Federal Government, has announced the offer for subscription of the July 2022 Federal Government Savings Bonds to investors.
This information, which is contained in a circular issued by the DMO and hoisted on its website, indicated that the bonds were 2-year and 3-year savings bonds, with interest rates of 8.075% and 9.075% respectively.
A further analysis of the information on the savings bonds showed that the 2-year FGN savings bond would be due on July 13, 2024, at 8.075% per annum and the 3-year FGN savings bond would be due on July 13, 2025, at 9.075% per annum.
According to the DMO, the unit of sale is N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000
A month-on-month comparison of the FGN’s savings bonds reflected that the rates for the two tranches were lower compared to 8.205% and 9.205% offered for the 2-year FGN savings bond due June 15, 2024, and 3-year FGN Savings bond due June 15, 2025, respectively.
The DMO maintained that the savings bonds were backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria, adding that they also qualify as securities in which trustees can invest under the Trustee Investment Act.
