By Obinna Uballa
The Federal Government has opened subscriptions for its December Savings Bonds, the Debt Management Office (DMO) announced on Wednesday.
The offers include a two-year FGN Savings Bond maturing on December 10, 2027, with an annual interest rate of 12.838%, and a three-year bond maturing on December 2028, offering 13.839% per annum.
According to the DMO, subscriptions opened on December 1, with a settlement date of December 10. Interest is payable quarterly on March 10, June 10, and December 10, while the principal will be repaid in full at maturity.
The bonds are sold at N1,000 per unit, with a minimum subscription of N5,000 and multiples of N1,000 thereafter, and a maximum subscription of N50 million.
The DMO emphasized that, like other Federal Government securities, the bonds are fully backed by the government, making them a secure investment option.
“These securities qualify for investment by trustees under the Trustee Investment Act and are tax-exempt for pension funds and other investors under the Company Income Tax and Personal Income Tax Acts,” the statement noted.
The bonds are listed on the Nigerian Exchange Ltd. and qualify as liquid assets for banks in calculating liquidity ratios, further enhancing their appeal to institutional and retail investors.
