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Details of How to Purchase/Subscribe FGN Savings Bond



FGN Savings Bond

By Dipo Olowookere

The FGN savings bond was created by the federal government a few years ago to meet the investment demands of low-income earners in the country.

Before the introduction of the financial asset, Nigerians had the opportunity to invest in treasury bills for as low as N10,000, but the Central Bank of Nigeria (CBN), which sells T-bills on behalf the Debt Management Office (DMO), raised the minimum subscription for the bills to N50 million.

This development made nearly it impossible for low-income earners to invest in government securities and the sovereign bonds available also required high minimum subscription to partake in them.

This made the debt office to design the FGN savings bond to attract retail investors, who wish to earn steady revenue by lending money to the government to carry out some critical infrastructure in the country. The minimum subscription for this was pegged at N5,000.

Since its introduction, investors have been embracing the papers and in the first week of every month, the DMO auctions the bonds in two different maturities; 2-year and 3-year.

For the month of December 2020, the offer opened on Monday, December 7 and will close on Friday, December 11.

However, not many people know how to go about purchasing this bond targeted at retail investors with a maximum subscription of N50 million. This is what this article hopes to help readers with.

To buy the FGN savings bond, an investor needs to open a stockbroker’s account and this should be with the notable names. In fact, not all brokerage firms are accredited to sell the notes.

Opening a stockbroker’s account is cheap and can be done for as low as N10,000. You can read about the favourite brokerage companies among Nigerian investors HERE.

After you have opened the account, you are good to go. You just have to request for the FGN savings subscription form, where you will be required to supply some details like your biodata, account details, including the BVN, which is a must for every financial transaction done in Nigeria.

A sample of the subscription form is in this article for guidance.

After all the information is supplied, the next stage is to make payment to the stockbroker’s account and the payment details, proof of payment, sent to the broker for confirmation. This can be done via an email or the chatbox if the company has one.

These are all the things needed to buy the FGN savings bond.

It is important to state that interests paid on the investment vary almost every month. For this month, the DMO is offering the 2-year paper at 1.32 per cent and the 3-year at 1.82 per cent per annum. The interest, which is also called the coupon, is paid four times a year.

On Wednesday, December 16, 2020, the federal government will credit the CSCS accounts of subscribers with the volume of bonds bought.

In the event you intend to sell your FGN savings bond before maturity to use the funds for emergencies, there is always an opening for that because the bonds are traded at the secondary market on the Nigerian Stock Exchange (NSE).

Do you require any additional information, please feel free to use the comment box, I will be readily available to respond to your questions.

FGN Savings Bond Subscription Form

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via

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FG to Announce New Date for Postponed FAAC Meeting for May 2022



FAAC meeting allocation

By Aduragbemi Omiyale

The federal government has said it would announce a new date for the Federation Account Allocation Committee (FAAC) meeting for this month, which was shelved in a circular on Wednesday.

On Wednesday, the Ministry of Finance, Budget and National Planning released a statement to announce the postponement of the FAAC Meeting for May 2022 over certain circumstances connected with the arrest of the Accountant General of the Federation (AGF), Mr Ahmed Idris.

Mr Idris, who is a key member of the FAAC team, is cooling off in the custody of the agency over an alleged N80 billion fraud. He is helping the EFCC in its investigation into the issue.

As a result of his arrest and suspension from office by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, the meeting for this month was shelved.

In the circular signed by the Director of Home Finance at the Ministry, Mr Stephen Okon, the federal government assured that “the new date for the meetings will be forwarded to you in due course.”

The gathering, which is held to share revenue generated by the country in the previous month to the three tiers of government; federal, states and local governments, was earlier slated to take place this month on Wednesday, May 18 and Thursday, May 19, 2022.

But Mr Okon stated in the notice that, “I am directed to inform you that the Federation Account Allocation Committee (FAAC) meetings earlier scheduled to hold virtually on the 18th and 19th May 2022 have been postponed due to certain circumstances.”

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Bulls Return to Unlisted Securities Market on 0.21% Growth



Unlisted Securities Market

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange welcomed the bulls back into its fold on Thursday following a 0.21 per cent growth at the close of business.

The bulls were at the unlisted securities market yesterday at the invitation of Niger Delta Exploration and Production (NDEP) and Food Concepts Plc, which recorded price appreciations during the session.

NDEP Plc gained N10 or 4.6 per cent to close at N220.00 per share as against the N210.00 it closed at the last session, while Food Concepts Plc appreciated by 6 kobo or 6.5 per cent to close at 93 kobo per unit compared with 87 kobo per unit of the previous session.

The gains reported by the duo expanded the NASD unlisted securities index (NSI) by 1.66 points to 808.79 points from 807.12 points and equally increased the market capitalisation by N2.17 billion to N1.06 trillion from N1.05 billion.

At the market yesterday, the trading volume rose by 17,545.7 per cent as a total of 20.0 million units of shares exchanged hands compared with the 113,500 units of shares transacted on Wednesday.

In the same vein, the trading value rose by 749.3 per cent to N24.4 million from the previous day’s N2.9 million, while the number of trades went down by 28.6 per cent to five deals from seven deals.

AG Mortgage Bank Plc remained the most traded stock by volume on a year-to-date basis with 2.3 billion units valued at N1.2 billion, Central Securities Clearing System (CSCS) Plc stood in second place with 661.7 million units worth N13.9 billion, while Food Concepts Plc was in third place with 134.0 million units valued at N114.9 million.

In the same vein, CSCS Plc ended the session as the most active stock by value on a year-to-date basis with 661.7 million units worth N13.9 billion, VFD Group was in second place with 9.4 million units valued at N2.9 billion, while AG Mortgage Bank Plc in third place has transacted 2.3 billion units valued at N1.2 billion.

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Naira Drops 0.34% at P2P, 0.26% at Investors’ FX Segment



FX Market Segments

By Adedapo Adesanya

The Naira depreciated against the Dollar at the Peer-to-Peer (P2P) segment of the foreign exchange (FX) market on Thursday by 0.34 per cent or N2 to trade at N615/$1 compared with the previous day’s N613/$1.

Also, at the Investors and Exporters (I&E) window, the Nigerian currency depreciated against the greenback yesterday by 0.26 per cent or N1.08 as it traded at N420.33/$1 in contrast to Wednesday’s closing value of N419.25/$1.

It was the second consecutive trading day that the local currency is coming under pressure amid disruption in the supply of forex to the market by the Central Bank of Nigeria (CBN).

The demand for FX is relatively high at the moment because politicians are trying to get foreign currencies to woo delegates to their sides to obtain tickets to contest in the 2023 general elections.

Data from the FMDQ Securities Exchange indicated that at the investors’ FX segment yesterday, transactions worth $75.56 million were executed, 62.47 per cent or $125.78 million lower than the $201.34 million achieved a day earlier.

However, at the interbank segment of the FX market, the domestic currency closed stronger against the Pound Sterling by 38 kobo to trade at N516.49/£1 versus N516.87/£1 and against the Euro, it gained 37 kobo to sell at N437.48/€1 versus the preceding session’s N437.11/€1.

At the cryptocurrency market, nine of the 10 tokens monitored by Business Post recovered, with the crisis-hit coin, TerraUSD (UST), further losing 21.4 per cent to quote at $0.07479.

Ripple (XRP) rose by 7.2 per cent to $0.432, Litecoin (LTC) gained 4.8 per cent to trade at $69.99, Cardano (ADA) appreciated by 4.6 per cent to sell at $0.5304, Binance Coin (BNB) grew by 4.2 per cent to trade at $307.16, while Ethereum (ETH) went up by 3.7 per cent to $2,017.41.

In addition, Bitcoin (BTC) jumped by 3.6 per cent to $30,086.44, Dogecoin (DOGE) moved higher by 2.6 per cent to trade at $0.0862, Solana (SOL) recorded a 1.5 per cent appreciation to sell at $51.09, while the United States Dollar Tether (USDT) gained 0.01 per cent to settle at $0.9989.

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