“Full Repayment in 3 Years”: FG Invites Nigerians To Buy Bonds and Earn, Starting Amount N5k
- The Nigerian government is inviting Nigerians to invest in two of its July bonds and has offered up to 16% interest rate
- The offer is open to every Nigerian interested in investing, and the repayment dates have been set for 2027
- President Bola Tinubu's administration will use the funds generated to meet urgent needs and offer Nigerians a chance to save and earn
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Debt Management Office (DMO) of Nigeria, on behalf of the federal government of Nigeria, has announced savings bonds for July 2024.
According to a statement by the DMO, the offer, which opened on Monday, July 1, will close on July 5, 2024, with a settlement date of July 10, 2027.
Source: Getty Images
The debt office also said the bonds come with an interest rate of up to 16.67% per annum for the two-year savings bond, while the three-year bond comes with an interest rate of 17.67%.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
DMO explains that the interest payment will be paid quarterly with coupon payment dates on October 10, January 10, April 10, and July 10.
The two-yearr savings bond would be due on July 10, 2026, while the 3-year- savings bond would be due on July 10, 2027.
The DMO statement on its website reads:
"The Federal Government of Nigeria (FGN) is offering units of sale at N1,000 per unit, with a minimum subscription of N5,000 and multiples of N1,000 thereafter, up to a maximum subscription of N50,000,000. Interest is payable quarterly, and redemption occurs as a bullet repayment on the maturity date.
"These securities qualify for investment under the Trustee Investment Act and as government securities under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption purposes for pension funds and other investors.
"The securities are listed on the Nigerian Stock Exchange, qualify as liquid assets for banks' liquidity ratio calculations, and are backed by the full faith and credit of the Federal Government of Nigeria, charged upon the general assets of Nigeria.
"Interested investors should contact the appointed stockbroking firms.
What are FGN saving bonds and purpose?
The Federal Government of Nigeria (FGN) Savings Bond helps to enhance the savings culture among Nigerians.
It also provides all citizens, irrespective of income level, an opportunity to contribute to national development and get comparatively favourable returns available in the capital market.
To invest, contact your stockbroker or visit www.dmo.gov.ng for the list of distribution agents.
IMF sends message to CBN on Nigeria's debt
Legit.ng earlier reported that the International Monetary Fund (IMF) asked the CBN to settle the overdue FX backlog to rebuild trust in the apex bank and the naira.
The organisation disclosed this in its recent executive board post-financing assessment with Nigeria report.
The IMF insisted that paying the CBN's dollar obligations would rebuild confidence in the bank and the Nigerian currency.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
