DMO launches new savings bonds for 2024
By Sodiq Adelakun
The Debt Management Office (DMO) of Nigeria has recently listed two savings bonds offered by the Federal Government for subscription.
These bonds, which are the first offers in 2024, provide individuals with a unique opportunity to invest in a secure and profitable financial instrument.
The first offer is a two-year savings bond that will mature on January 17, 2026, with an attractive interest rate of 11.033 percent per annum.
The second offer is a three-year savings bond that will mature on January 17, 2027, offering an even higher interest rate of 12.033 percent per annum.Investors can participate in these offers by purchasing units of the savings bonds at a price of N1,000 per unit.
The minimum subscription amount is N5,000, and subsequent investments must be made in multiples of N1,000. However, there is also a maximum subscription limit of N50 million.One of the key advantages of these savings bonds is the regular income they provide.
Interest payments are made quarterly, ensuring a steady stream of earnings for investors. Additionally, the bonds offer a bullet repayment structure, meaning that the principal amount will be repaid in full on the maturity date.
The safety and reliability of these savings bonds are further enhanced by the fact that they are backed by the full faith and credit of the Federal Government. They are also charged upon the general assets of Nigeria, making them a secure investment option.
Furthermore, these savings bonds are considered government securities under the Trustees Investment Act, allowing trustees to invest in them. They also qualify for tax exemption under the Company Income Tax Act and Personal Income Tax Act, making them an attractive option for pension funds and other investments.
The subscription period for these offers opens on January 8 and closes on January 12. Settlement will take place on January 17, and coupon payments will be made on April 17, July 17, October 17, and January 17.In conclusion, the Federal Government savings bonds present a lucrative investment opportunity for individuals looking to grow their wealth.
With attractive interest rates, regular income payments, and the backing of the Federal Government, these bonds offer a secure and profitable investment option. Don’t miss out on this chance to invest in the future of Nigeria.
