The Director-General of Debt Management Office (DMO), Patience Oniha, has announced the offering of two Federal Government of Nigeria (FGN) savings bonds for subscription. The offer was posted on the DMO’s Twitter handle, and it said that the coupon payment dates are January 12, April 12, July 12, and October 12. The opening date for the bond subscription is October 4, 2022, and the settlement dates are October 7 and 12 respectively.
The first offer is a two-year FGN savings bond, due on the 12th of October, 2024 at 11.38 per cent. The second offer is a three-year FGN savings bond, due on the 12th of October, 2025, at 12.38 per cent. The DMO said “The bonds are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a minimum subscription of N50 million. She added that “Interest payment will be made quarterly while bullet repayment will be made on the maturity date”.
The post said: “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, among other investors. They are listed on the Nigeria Stock Exchange and qualify as a liquid asset for liquidity ratio calculation for banks”. This explains that the bonds qualify as securities, where trustees can invest under the Trustee Investment Act.