FG announces 2-year, 3-year savings bonds for investors

The Federal Government of Nigeria has announced the launch of new 2-year and 3-year Savings Bonds, offering attractive interest rates to investors seeking secure investment opportunities.

The Debt Management Office (DMO) Nigeria, a government agency established to centrally coordinate the management of Nigeria’s debt, disclosed this in a statement on Monday.

DMO said the bonds would be available for subscription from February 5th to 9th, 2024, offering yields of 12.751% for the 2-year bond and 13.751% for the 3-year bond, paid quarterly. This represents a competitive option in the current market environment.

It also stated that 1,000 per unit requires a minimum subscription of 5,000 and a maximum subscription of N50,000 in subsequent multiples of 1,000, noting that interest payments are made quarterly and the principal is repaid in full at maturity.

The agency added that the investment qualifies under the Trustee Investment Act as securities in which trustees can invest and It is recognised as government securities, meeting the criteria outlined in the Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, among other investors.

It is also listed on the Nigerian Exchange Limited, adding that it qualifies as a liquid asset for liquidity ratio calculation for banks.

The government agency added that interested investors should contact the stocking firms appointed as distribution agencies by the debt management.

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