DMO offers two savings bonds for subscription at N1,000 per unit

The Debt Management Office (DMO) has announced a new offer of two Federal Government of Nigeria (FGN) savings bonds, available for subscription at N1,000 per unit. The first bond, a two-year option, is due on October 14, 2028, with an annual interest rate of 13.071 percent. The second bond, a three-year option, matures on October 14, 2029, offering a higher interest rate of 14.071 percent per annum.

Subscribers can begin purchasing these bonds from October 5 and must complete their transactions by October 9. The settlement date for the bonds is October 14, and coupon payments will be made quarterly on January 14, April 14, July 14, and October 14. FGN savings bonds can be purchased in multiples of N1,000, with a minimum subscription requirement of N5,000 and a maximum of N50 million.

DMO emphasizes that these bonds are risk-free government securities, backed by the full faith and credit of the Federal Government and secured against the nation's assets. They are exempt from taxes under the Company Income Tax Act and Personal Income Tax Act, making them attractive investments for pension funds and other investors. Additionally, FGN savings bonds are listed on the Nigerian Exchange Limited and classified as liquid assets, contributing to banks' liquidity ratio calculations.

Investors can view FGN savings bonds as a safe way to earn guaranteed returns while contributing to national development, as these debt securities are specifically designed for retail investors.