The Debt Management Office (DMO) has offered for subscription a 2-Year Federal Government of Nigeria (FGN) Savings Bond with a maturity date of August 1,6th, 2025, with an annual interest rate of 9.634% as well as a 3-Year FGN Savings Bond due on August 16th, 2026, offering an annual interest rate of 10.634%.
The Office stated on Friday that the subscription period for the FGN Savings Bond opened on August 7th, 2023, and will close on August 7th, 2023 and that the total amount allotted for the 2-year bond is N421.76 million while that of the 3-year bond is N1.06 billion.
According to the Office, “once subscribed, bondholders will receive coupon payments at regular intervals. The coupon payment dates are scheduled for November 16, February 16, May 16, and August 16,” it stated.
The FGN Savings Bond programme aims at attracting domestic savings while also financing critical infrastructure projects and government initiatives.
By investing in the bonds, investors can contribute to the country’s development efforts and earn favorable returns on their investments.
The DMO advised interested investors to contact their financial advisors or visit the its official website for further details and application procedures.
The FGN bonds qualify as securities in which trustees can invest under the Trustee Investment Act as well as securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds amongst other investment guarantees.
