DMO Introduces Two New Federal Government Bonds

The Debt Management Office (DMO) has unveiled an exciting opportunity for investors with the launch of two new Federal Government of Nigeria (FGN) savings bonds, each offering attractive returns. These bonds are priced at just N1,000 per unit and provide a unique investment chance with substantial interest rates.

The first bond is a two-year FGN savings bond, set to mature on August 21, 2026, with an appealing annual interest rate of 17.373%. The second option is a three-year FGN savings bond, maturing on August 21, 2027, offering an even higher annual interest rate of 18.373%. 

Subscriptions for these bonds open on August 12 and close on August 16, with settlement slated for August 21. Investors can expect quarterly interest payments, with coupon settlement dates falling on November 21, February 21, May 21, and August 21. 

Investors can purchase these bonds with a minimum subscription of N5,000, and increments of N1,000 thereafter, up to a maximum of N50 million. The bonds offer a bullet repayment structure, meaning the principal sum is repaid in full at maturity.

The DMO emphasizes that these FGN savings bonds are backed by the full faith and credit of the Federal Government of Nigeria and are secured against the general assets of the nation. They are also classified as securities eligible for investment under the Trustee Investment Act, tax-exempt under the Company Income Tax Act and Personal Income Tax Act for pension funds and other investors, and are listed on the Nigerian Exchange Limited, making them liquid assets for banks' liquidity ratio calculations.

For those interested in investing, the DMO has advised contacting appointed stockbroking firms for more details and to facilitate purchases.