By Seun Ibiyemi
The Debt Management Office (DMO), acting on behalf of the Federal Government, has opened a new offer for subscription to two Federal Government of Nigeria (FGN) Savings Bonds, available at N1,000 per unit.
In a statement released on Monday in Abuja, the DMO announced that the first is a two-year FGN Savings Bond, due on 11 June 2027, with an annual interest rate of 16.121 per cent. The second is a three-year FGN Savings Bond, due on 11 June 2028, carrying an annual interest rate of 17.121 per cent.
The subscription window opens on 2 June and closes on 6 June, with a settlement date fixed for 11 June. Coupon payments are scheduled quarterly, falling on 11 September, 11 December, 11 March and 11 June each year.
The bonds are being offered at N1,000 per unit, with a minimum subscription of N5,000 and subsequent investments to be made in multiples of N1,000. The maximum permissible subscription is capped at N50 million. Interest is paid quarterly, while the principal amount will be repaid in full at maturity.
The DMO assured investors that these FGN Savings Bonds are fully backed by the creditworthiness of the Federal Government and are secured against the general assets of the nation.
“These bonds are recognised as eligible securities for trustees under the Trustee Investment Act,” the statement said.
“They also qualify as government securities as defined under the Company Income Tax Act and the Personal Income Tax Act, thereby offering tax exemptions for pension funds and other qualified investors.”
The bonds are listed on the Nigerian Exchange Limited and are accepted as liquid assets when calculating the liquidity ratio for banks.
FGN Savings Bonds are government-backed instruments issued by the DMO to offer individuals and small-scale investors a secure and accessible means of investment.
They are considered among the safest investment options in Nigeria due to their negligible default risk. These bonds come with fixed interest rates, ensuring predictable income. Unlike traditional FGN Bonds that often require high minimum investments, FGN Savings Bonds are structured specifically for retail investors, featuring low entry thresholds.
Proceeds from the issuance of these bonds are used by the government to fund public projects and support the national budget.