DMO attributes delays in FGN coupon payment to technical glitches

The Federal Government via the Debt Management Office has attributed the recent delay in coupon payments to savings bond subscribers to system and processing challenges.

Bloomberg reports that the first coupon payment on the 2 year and 3 year debt instruments, through which the government raised N4.2 billion in June, was due on Sept. 12 but has remained unpaid.

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Reports showed that this marks the second consecutive delay in fulfilling obligations on a savings bond, according to investors. Reacting to the development, Patience Oniha, the Director General DMO attributed the delay to a “system, process issue,” which is “being addressed.” “I expect an outcome today,” she said in a response to Bloomberg’s question on Friday.

It added that subscribers to other savings bonds said there was a week delay in coupon payments due in August, the first time they experienced a hold-up since the introduction of the instruments 7 years ago.