FG Offers Mouth-Watering Deal as It Invites Nigerians to Buy Savings Bonds
- The Debt Management Office has introduced two Federal Government of Nigeria Savings Bonds
- One is a two-year bond with interest rates of 17.23% per year, maturing in January 2027
- The other is a three-year bond with an interest rate of 18.23% per year that matures in January 2028
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Two of the federal government of Nigeria's savings bonds have been introduced according to the Debt Management Office.
One has an interest rate of 17.23% annually for the two-year bond that matures in January 2027, and the other has an interest rate of 18.23% annually for the three-year bond that matures in January 2028.
Source: Getty Images
The bonds will go on sale on January 22, 2025, and the subscription period will begin on January 13, 2025, and end on January 17, 2025.
On April 22, July 22, Trustees, pension funds, and other institutional investors may also purchase the bonds, which are free from taxes under the Company Income Tax Act and the Personal Income Tax Act.
The bond has a price of N1,000 per unit, a minimum subscription of N5,000, and a maximum subscription of N50,000,000.
The bonds are a safe investment for Nigerians because they are entirely backed by the Federal Government's credit.
The Debt Management Office declared that the Federal Government would be issuing three bonds valued at N150 billion for the September auction.
Earlier, Legit.ng reported that the Nigerian government, via the Debt Management Office (DMO), 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.
The second is a three-year savings bond maturing December 11, 2027, with an interest rate of 18.48%. Coupon payments are set for March 11, June 11, September 11, and December 11.
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.
SMEs lament effect of skyrocketing interest rates
Legit.ng reported that Small, medium and micro business owners in Nigeria say that the high interest rates and high cost of operations are gradually choking their businesses.
Speaking under the umbrella of the National Association of Small and Medium Enterprises (NASME), they noted that these factors are toxic to any business growth.
He added that this, coupled with the low purchasing power among Nigerians, also worsened the situation in 2024, resulting in poor SME performance in 2024.
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Source: Legit.ng
