The federal government, the Debt Management Office (DMO), on Monday, issued two new savings bonds at N1,000 per unit for September.
The DMO, on its website, highlighted that the first bond is a two-Year FGN Savings Bond to mature on September 14, 2024, at interest rate of 11.04 per cent per annum.
The second bond, according to DMO, is a three-year FGN savings bond due on September 14, 2025, at interest rate 12.04 per cent per annum
According to the announcement: “Offer opens on Sept. 5 and closes on Sept. 9. Settlement date is Sept. 14, while coupon payment dates are Dec. 14, March 14, June 14 and Sept. 14.
“They are subject to a minimum subscription of N5,000, and multiples of N1,000 thereafter, and subject to a maximum subscription of N50 million.
“Interest payment is made quarterly, while bullet repayment (principal amount) will be made on the maturity date.”
The notice added that the FGN savings bonds qualified as securities in which trustees could invest under the Trustee Investment Act.
“It also qualifies 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.
“It is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,” the DMO explained.