MARKET NEWS

By Joseph Chibueze, Abuja

The Debt Management Office (DMO) has opened subscriptions for two Federal Government of Nigeria (FGN) savings bonds at N1,000 per unit.

The first offer is a two-year savings bond due to mature on April 16, 2027, at 16.046 per cent per annum, while the second is a three-year savings bond due to mature on April 16, 2028, at an interest rate of 17.046 per cent per annum.

The FGN savings bond offer is tailored and targeted at retail investors. It offers guaranteed quarterly interest payments and repayment of the principal at maturity.

In a statement on its official website on Monday, DMO said the offers opened on April 7, 2025, will close by April 11, 2025.

The DMO said the settlement date is April 16, 2025, while coupon payment dates are made quarterly – July 16, October 16, January 16, and April 16.

According to the DMO, “They are offered at 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.

“Interest is payable quarterly while bullet repayment is made on the maturity date.”

DMO said the savings bonds, like all other government securities, are backed by the credit of the Federal Government and charged upon the general assets of Nigeria, adding that they also qualify as securities in which trustees can invest under the Trustees Investment Act.

“They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption and pension funds, amongst other investors,” DMO said.

The agency said the bonds are listed on the Nigerian Exchange Limited ( NGX) and qualify as liquid assets for banks’ liquidity ratio calculations.

The Federal Government borrowed a total of N1.94 trillion from bond investors in the first quarter of 2025, this however, does not include borrowings through the FGN savings bond programme.