The Debt Management Office (DMO) of Nigeria, on behalf of the Federal Government, has announced an exciting opportunity for investors with the launch of its Federal Government of Nigeria Savings Bond (FGNSB). This offering is made under the authority of the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004, and provides a secure and attractive investment avenue for the public.
The FGNSB is available in two series:
– 2-Year FGN Savings Bond: Due September 11, 2026, with an interest rate of 17.202% per annum.
– 3-Year FGN Savings Bond: Due September 11, 2027, with an interest rate of 18.202% per annum.
Key Details of the Offer:
– Opening Date: September 2, 2024
– Closing Date: September 6, 2024
– Settlement Date: September 11, 2024
– Coupon Payment Dates: Quarterly payments on December 11, March 11, June 11, and September 11.
Investment Requirements:
The bonds are available at a price of N1,000 per unit, with a minimum subscription of N5,000. Investors can subscribe in multiples of N1,000, up to a maximum subscription of N50,000,000. The bonds offer a bullet repayment structure, meaning the principal will be repaid in full at the end of the bond term.
Benefits for Investors:
1. Trustworthy Investment: The bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the country’s general assets.
2. Tax Advantages: They qualify as securities for investment under the Trustee Investment Act and are eligible for tax exemptions for pension funds and other investors under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA).
3. Listing and Liquidity: The bonds will be listed on The Nigerian Exchange Limited, and they qualify as a liquid asset for banks’ liquidity ratio calculations.
Investors interested in the Federal Government of Nigeria Savings Bond should contact stockbroking firms appointed as distribution agents by the Debt Management Office. For more information and a list of authorized agents, please visit the DMO’s official website at [www.dmo.gov.ng](http://www.dmo.gov.ng).
This offer presents a great opportunity for investors seeking secure, government-backed securities with attractive returns. Don’t miss the chance to be part of this offer and contribute to the growth of Nigeria’s economy.
