DMO Offers Two FG Savings Bonds for Subscription
By Patience Ikpeme
The Debt Management Office (DMO) has announced the opening of subscriptions for two new Federal Government (FG) savings bonds, providing an investment opportunity for Nigerians seeking secure and profitable returns. These bonds, offered at a minimum price of N1,000 per unit, come with attractive interest rates and various benefits, making them a viable option for individual and institutional investors alike.
In a statement released by the DMO, the first bond on offer is a two-year FG savings bond with a maturity date of August 21, 2026, and an annual interest rate of 17.373 percent. The second bond is a three-year savings bond maturing on August 21, 2027, offering a slightly higher interest rate of 18.373 percent per annum.
The subscription period for these bonds commenced on August 12 and will close on August 16, with the settlement date set for August 21. Investors can purchase the bonds in denominations of N1,000, with a minimum subscription of N5,000 and subsequent investments in multiples of N1,000. The maximum allowable subscription is capped at N50 million.
One of the key attractions of these savings bonds is the structured payment of interest. Investors will receive quarterly interest payments on November 21, February 21, May 21, and August 21 each year until the bond matures. The principal amount invested will be repaid in full upon maturity, providing a predictable and steady income stream for investors.
The DMO emphasized the security and reliability of these savings bonds, assuring potential subscribers that the bonds are fully backed by the Nigerian government and are charged upon the general assets of the country. This assurance underlines the government’s commitment to fulfilling its obligations, making these bonds a low-risk investment option.
Moreover, the bonds qualify as securities in which trustees can invest under the Trustee Investment Act, broadening their appeal to a wide range of investors. They also meet the criteria set out in the Company Income Tax Act and Personal Income Tax Act, allowing for tax exemptions for pension funds and other eligible investors.
In addition to these benefits, the bonds are listed on the Nigerian Exchange Limited, ensuring liquidity for investors. They also qualify as liquid assets for liquidity ratio calculations required by banks, adding to their utility and attractiveness for financial institutions.
The DMO’s offer of these savings bonds is part of the Federal Government’s broader strategy to raise funds for national development projects while providing secure investment opportunities for Nigerians. With interest rates that outpace current inflation levels, these bonds present an opportunity for Nigerians to grow their wealth while contributing to the country’s economic stability.
Investors interested in participating in this offer are advised to act swiftly, as the subscription window is limited. The DMO’s savings bonds continue to be a reliable option for those seeking a safe haven for their investments amidst economic uncertainties.
