FGN bonds are good collateral instruments for bank loans — DMO

The Debt Management Office (DMO) says Federal Government of Nigeria’s (FGN) savings bonds are acceptable as collateral for loans in banks.

Clarifying issues surrounding the savings bonds, its Director-General, Ms Patience Oniha, stated on Wednesday in Abuja that the bonds were financial instruments issued by the DMO on behalf of government.

She added that they are backed by the full faith and credit of the Federal Government.

“FGN bonds are issued monthly in tenors of two years or three years, and there are no fees or charges for subscription.

“They can be sold for cash at the Nigeria Stock Exchange (NSE) and they are acceptable as collateral for loans by banks,” she stated.

The Director-General added that the bonds were good for savings towards retirement, marriages, payment of school fees and for housing projects.

“Minimum subscription is N5,000 while the maximum subscription is N50 million.

“Interests on the bonds are paid quarterly,” she explained.

Oniha urged interested subscribers to contact the NSE or agents posted and updated on the official website of the DMO.