On the 2nd of January, 2023, The Debt Management Office (DMO) announced two Federal Government of Nigeria (FGN) Savings Bonds for subscription to commence its first bonds issuance for the year. The DMO revealed through a statement that the First Savings Bond is a two-year Bond due in January 11, 2025, at an interest rate of 9.600 per cent per annum. The Second Savings Bond is a three-year Bond due in January 11, 2026, at an interest rate of 10.600 per cent per annum.
The opening date is January 3, 2023, the closing date will be January 6; and the settlement date will be January 11. Dates for coupon payment will be on the 11th of April, 11th of July, 11th of October, and the 11th of January respectively.
The Bonds are fully supported by the Federal Government of Nigeria and charged upon the general assets of the country. Trustees can invest in the Savings Bonds under the Trustee Investment Act, since they qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds
These bonds are also listed on the Nigerian Stock Exchange Limited and as a result, qualify as liquid asset for liquidity ratio calculation for banks. They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, making it a maximum subscription of N50 Million. The principal sum which is the bullet repayment, is based on maturity; while Interest is paid quarterly.
