Savings

DMO issues savings bonds at over 10% interest

The federal government has issued two savings bonds through the Debt Management Office (DMO) that have two-year and three-year terms with interest rates of 11.041% and 12.041% respectively.

DMO had, in the first five months of 2022, raised N5.58 trillion by saving bonds to fill the budget gap of N6.26 trillion.

The DMO had launched the Federal Government of Nigeria (FGN) Savings Bond in 2017 for retail investors which guaranteed payment of interest which is paid quarterly and repayment of principal.

On issuing the latest bonds, DMO said, “Subscription is authorized to receive applications for FGN Savings Bonds at the following interest rates FGN 2-Year Savings Bond due September 14, 2024 with interest of 11.041% per annum and 3-year Savings Bond maturing September 14, 2025 with interest of 12.041% per annum.

He said the unit of sale is N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million .

He said the opening date begins on September 5, 2022 and ends on September 9, 2022 while considered securities in which trustees can invest under the Trustee Investment Act; is considered government securities within the meaning of the Corporation Income Tax Act (CITA) and the Personal Income Tax Act (PITA) for the tax exemption of pension funds , among other investors.

He added that the bonds will be listed on the Nigerian Stock Exchange and will be considered as a liquid asset for calculating the liquidity ratio for banks.

While stating that it is backed by the full faith and credit of the FGN and charged to the general assets of Nigeria, interested investors should contact brokerage firms who are agents of the DMO.