DMO Commences Sale of FGN Savings Bonds for February 2023

February 6, 2023
FGN savings bonds

By Modupe Gbadeyanka

The sale of FGN savings bonds for February 2023 by the Debt Management Office (DMO) has commenced, a circular from the agency has confirmed.

The exercise will last for one week, starting from Monday, February 6 to Friday, February 10, 2023, the disclosure added.

The debt instrument is targeted at low-income earners in the country, giving them the opportunity to support the federal government in raising funds to meet the budget deficit and earning something from this.

The DMO is offering the paper in two maturities, 2-year and 3-year, with a unit sold for N1,000 and the minimum subscription at N5,000, and the maximum subscription at N50 million.

The debt office is advertising the 2-year note due February 15, 2025, at a coupon rate of 10.04 per cent, and the 3-year note maturing on February 15, 2026, is selling at a coupon rate of 11.04 per cent.

The interest would be paid to subscribers every quarter, according to the statement issued by the organisation on Monday, stating that the bond can be purchased from any of the stockbroking firms it appointed as distribution agents.

Business Post reports that the FGN savings bond is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

It is tax-free because it 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, amongst other investors.

The paper, which qualifies as liquid asset for liquidity ratio calculation for banks, also serves as securities in which trustees can invest under the Trustee Investment Act and would be listed on the Nigerian Exchange (NGX) Limited after the exercise.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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