DMO Opens Two Savings Bonds, Asks Nigerians to Subscribe at 16.64 And 17.64 Interest Rates
- The Debt Management Office (DMO) has opened two Federal Government Savings bonds for subscription for March 2025
- The bonds are offered at a quarterly interest rate of 16.64% and 17.64 and would mature in 2027 and 2028, respectively
- The subscription date opened on March 3, 2025, and closes on March 7, 2025, and offered at N1,000 per unit
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Debt Management Office (DMO) has announced the opening of two Federal Government Savings bonds for subscription at 16.64% and 17.64% interest rates respectively.
The DMO disclosed this in a statement, saying that the first offer is a two-year FGN savings bond which will mature on March 12, 2027, at an interest rate of 16.635%.
Source: Getty Images
FGN bonds to attract a 17.64% interest rate
The second offer is a three-year FGN savings bond due to mature on March 12, 2028, at an interest rate of 17.635%.
The DMO revealed that the offer opened on March 3, 2025, and will close on March 7, 2025.
The settlement date is March 12, 2025, while coupon settlement dates are June 12, September 12, December 12, and March 12, respectively.
Nigerians can invest with N1,000
The Guardian reports that the bonds are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000, subject to a maximum subscription of N50 million.
According to the nation’s debt managers, interest is quarterly while the principal sum payment is on the maturity date.
According to the DMO, the bonds qualify as securities, which trustees can invest under the Trustee Investment Act.
It added that the bonds are listed on the Nigeria Exchange Limited (NGX) as liquid assets for banks’ liquidity ratio.
Recently, the DMO revealed that it raised N1.63 trillion from the February 2025 auction.
The figure is about N960.06 billion more than the N669.94 billion raised from the January 2025 bond auction.
Nigeria’s domestic debt hits N13 trillion
The government plans to borrow about N13 trillion in 2025 to finance the 2025 budget.
FGN bonds are part of Nigeria’s domestic debt, which the DMO said has hit about N69.2 trillion as of September 2024.
Of that amount, FGN Bond accounts for 78% of the total domestic debt at N54.6 trillion.
The bonds include naira bonds, which stand at N53.1 trillion and FGN US dollar bonds at N1.4 trillion.
Nigeria’s debt balloons
Other domestic debt includes Nigerian Treasury Bills, which constitute 16.95% of the domestic debt at N11.7 trillion, FGN savings bonds at N64 million, Sukuk bonds at N992.5 billion, Green bonds at N15 billion, and others.
Legit.ng reported that Nigeria’s debt to the World Bank is set to balloon to about $9.4 billion this year under President Bola Tinubu.
Also, the government is about to secure six new loans of about $2.23 billion from the World Bank in 2025 as the bank continues to support the country’s economic reforms.
Source: UGC
According to data from the World Bank, the new borrowings will bring Nigeria’s total debt to the World Bank to $9.25 billion in three years, showing a continued dependence on external funding to support critical sectors of the economy.
FG asks Nigerians to invest in infrastructure with N5k
Legit.ng earlier reported that DMO has begun the subscription of two-year and three-year FGN bonds for December 2023, with an annual interest rate of 12.287% and 13.287%.
The DMO disclosed this in a statement on its website on Monday, November 4, 2023.
The statement said the offer will last for five days, commencing on December 4 and concluding on December 8, 2023.
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Source: Legit.ng
