By Marian Abeeb
The Debt Management Office (DMO) has announced the commencement of subscriptions for the federal government of Nigeria (FGN) savings bonds for October.
DMO announced in a circular via its X account on Monday.
According to the debt office, the offer includes a two-year bond due October 15, 2027, at an interest rate of 14.06 percent per annum, and a three-year bond due October 15, 2028, at 15.06 percent per annum.
The subscription opened on Monday, and will close on October 10.
Settlement is scheduled for October 15, while coupon payments will be made quarterly on January 15, April 15, July 15, and October 15 of each subsequent year.
“N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter subject to a maximum of N50,000,000,” DMO said.
According to the circular, the interest on the bonds will be paid quarterly, with bullet repayment upon maturity.
DMO also noted that the bonds qualify as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption benefits.
The agency confirmed that the stock “Qualifies as securities in which trustees can invest under the Trustee Investment Act”.
DMO explained that the bonds are listed on the Nigerian Exchange Limited (NGX) and qualify as liquid assets for banks’ liquidity ratio calculation.
The debt office advised interested investors to contact stockbroking firms appointed as distribution agents for the savings bond.
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