The Federal Government of Nigeria has opened subscriptions for its December Savings Bonds, offering investors a chance to earn attractive returns backed by the government’s full credit. The announcement was made Wednesday by the Debt Management Office (DMO).
The two tranches on offer include:
- Two-year FGN Savings Bond maturing on December 10, 2027, with an annual interest rate of 12.838%.
- Three-year FGN Savings Bond maturing on December 2028, offering 13.839% per annum.
“Opening date is December 1, settlement date is December 10, while coupon payment dates are March 10, June 10, and December 10,” the DMO said.
The bonds are offered at N1,000 per unit, with a minimum subscription of N5,000 and multiples of N1,000 thereafter. The maximum subscription per investor is N50 million. Interest is paid quarterly, while the principal is returned at maturity.
The DMO emphasized that the bonds, like other Federal Government securities, are fully guaranteed, providing a safe investment option for individuals and institutions.
“They qualify as securities in which trustees can invest under the Trustee Investment Act. They also qualify as government securities under the Company Income Tax Act and Personal Income Tax Act, making them tax-exempt for pension funds and other eligible investors,” the DMO added.
The bonds are listed on the Nigerian Exchange Limited, and qualify as liquid assets for banks in calculating liquidity ratios, making them an attractive option for both retail and institutional investors.
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