Finance

DMO provides two types of savings bonds available for subscription

DMO provides two types of savings bonds available for subscription

The Debt Management Office (DMO) has opened the October 2024 Federal Government of Nigeria (FGN) savings bond offer, providing two bond series with attractive interest rates. According to the bond circular released by the DMO, the subscription window will remain open from October 7 to October 11, 2024.

The two bond offerings include:

  1. A two-year FGN savings bond maturing on October 16, 2026, with an interest rate of 17.084% per annum.
  2. A three-year FGN savings bond maturing on October 16, 2027, with an interest rate of 18.084% per annum.
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These bonds are designed to generate regular income for investors, with interest payments scheduled quarterly on January 16, April 16, July 16, and October 16 each year.

Investors can subscribe to these bonds with a minimum investment of N5,000, available in multiples of N1,000, up to a maximum of N50 million. These bonds are listed on The Nigerian Exchange, offering liquidity for those who wish to trade them before maturity.

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Additionally, the DMO emphasized that these bonds qualify as government securities under the Trustee Investment Act, making them suitable for trustees and pension funds. The bonds also qualify as securities for tax exemption for pension funds under the Company Income Tax Act and Personal Income Tax Act.

The bonds are backed by the full faith and credit of the Federal Government of Nigeria, making them a secure investment option. Interested investors are advised to contact authorized stockbroking firms for subscription details or visit the DMO’s website for further information.

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In September 2024, the Federal Government’s savings bonds attracted N2.75 billion in successful subscriptions for its three-year bond with an 18.20% coupon rate. The two-year bond maturing in 2026 had a coupon rate of 17.202%, raising N843.58 million from 418 subscriptions.

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