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Money and Fixed Income

DMO Invites Investors for 2 August Savings Bond Offers

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2024 Savings Bonds

The Debt Management Officer (DMO) has activated the process to offer two savings bonds of the Federal Government of Nigeria (FGN) for subscription for the month of August.

The August offer which opened on Monday (today) include a 2-Year FGN Savings Bond due August 16, 2025: 9.634% per annum; and a 3-Year FGN Savings Bond due August 16, 2026: 10.634% per annum.

While the offer will close on August 11, 2023, the settlement date for the deal is pegged at August 16. Similarly, investors who would subscribe to the bond would receive coupon payments on November 16, February 16, May 16, and August 16.

Units of subscription: According to the DMO, the units of subscription are as follows “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.”

Interested investors are to contact stock brokerage firm listed as agents by the Debt Management Office (DMO) and the bonds are listed on the NGX.

Investors would get bullet repayment of their money at the respective maturity of the bond.

The security of the deal is guaranteed as the savings bond is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

The DMO directed interested investors to contact the stockbroking firms appointed as distribution agents by the debt management office.

Status: The savings bond qualifies as securities in which trustees can invest under the Trustee Investment Act as well as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, amongst other investors.

Savings bond is listed on the Nigerian Stock Exchange and it has the status of a liquid asset for liquidity ratio calculation for banks.

The offer is pursuant to the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 Debt Management Office. The DMO is authorised to receive applications for the Federal Government of Nigeria Savings Bond.

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