The Debt Management Office (DMO) on Monday announced two Federal Government of Nigeria (FGN) Savings Bonds as its first bonds issuance for 2023.
A statement by the DMO said one is a two-year FGN Savings Bond due on 11 January, 2025, at the interest rate of 9.600 per cent per annum.
The second offer is a three-year FGN Savings Bond due on January 11, 2026, at the interest rate of 10.600 per cent per annum.
The debt office said that the opening date would be January 3rd while the closing date would be January 6th. The settlement date, it said, will be January 11, while coupon payment dates would be April 11, July 11, October 11 and January 11.
“They are offered at 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 million,” the DMO said.
“Interest is payable quarterly while bullet repayment (principal sum) is on maturity.”
FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act, it added.
“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.”
Similarly, they are listed on the Nigerian Stock Exchange Limited and qualify as liquid asset for liquidity ratio calculation for banks.
The bonds were backed by the full faith and credit of the FGN and charged upon the general assets of the country, the statement added.