FGN securities are financial instruments issued by the DMO on behalf of the FGN.

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They are mostly Fixed Income Securities, which makes the borrower or issuer obliged to make payments of a fixed amount on a fixed schedule.

Amongst benefits of FGN securities, according to the DMO, are that they are backed by the “full faith and credit” of the Federal Government.

“The interest income earned on FGN securities are tax exempt.

“Investors can use their investments in FGN Securities as collateral to borrow from banks and

other financial institutions, and investors can use them to diversify their portfolios, reduce risk and achieve stability in value.

“Investors can earn a fixed, predictable, and regular cash flow on their investments,” the DMO said.