FG Opens Subscriptions for FGN Bonds with 18.48% Interest, Full Repayment in 2026
The Nigerian government, through the Debt Management Office (DMO), has issued two FGN bonds for subscription for December 2024
- The DMO disclosed that the two bonds would attract interest rates of 17.48% and 18.48 interest rates, respectively
- It stated that the first offering is a two-year FGN savings bond set to mature on December 11, 2026, and the second on December 11, 2027
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian government, via the Debt Management Office (DMO), has announced the offering of two FGN bonds for subscription in December, with interest rates ranging from 17.48% to 18.48%, respectively.
The DMO disclosed in a statement on Monday, December 2, 2024, that the first offering is a two-year FGN savings bond set to mature on December 11, 2026, accruing a 17.48% interest rate.
Source: UGC
Maturity dates for the bonds
The second is a three-year savings bond maturing December 11, 2027, with an interest rate of 18.48%.
The subscription opens on December 2, 2024, and closes on December 6, 2024, with settlement due on December 11.
Coupon payments are set for March 11, June 11, September 11, and December 11.
Nigerians to invest at least N1,000 per unit
According to reports, the bonds are priced at N1,000 per unit with a minimum of N5,000 and increments of N1,000 after, up to a maximum of N50 million.
The DMO disclosed that the bonds are backed by the full faith and creditworthiness of the federal government, making them a secure investment.
The statement stated that the bonds can be used as securities under the Trustee Investment Act and are tax-free under the Company Income Tax Act and the Personal Income Tax Act for some investors, including pension funds.
It further stressed that bonds are listed on the Nigerian Exchange Limited (NGX) and qualify as liquid assets for liquidity ratio calculations by banks.
FG invites Nigerians to invest in savings bonds at just N1,000
Legit.ng earlier reported that the DMO has unveiled a new opportunity for subscription to two Federal Government of Nigeria (FGN) savings bonds, priced at N1,000 per unit.
The DMO disclosed this in a statement released on Monday, August 7, 2024, in Abuja.
These savings bonds are designed specifically for retail investors. They ensure a quarterly interest payout and full principal repayment upon maturity.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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