DMO Resumes Sale of FGN Savings Bonds to Investors

FGN Savings bond

By Dipo Olowookere

Four months after it suspended the sale of FGN savings bonds, the Debt Management Office (DMO) has announced that it will start issuing the debt securities to investors.

In a statement issued on Thursday, the debt office said those willing to purchase the papers can do so this month, precisely from next week.

In April, the DMO suspended the sale of the bonds after the federal government shut down Lagos, Abuja and Ogun State to curb the spread of Coronavirus in the country.

“The DMO was constrained to suspend the monthly offers of the FGN Savings Bond in April 2020 due to the restrictions on activities and movement as part of measures adopted by the government to curtail the spread of COVID-19,” the debt office confirmed in the notice it released today.

But it said “effective August 2020,” the monthly sale of the FGN savings bond will resume, urging the general public “to look out for the advert of the offer for subscriptions in various newspapers and the DMO’s website.”

The statement said further that, “The offer for subscription will open on Monday, August 10, 2020, and close on Friday, August 14, 2020.”

“Investors are encouraged to continue saving through the FGN savings bond, as they attract good incomes and are secure, being a sovereign instrument, whilst also, contributing to national development,” the statement added.

The FGN savings bond qualifies as securities in which trustees can 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, amongst other investors.

In addition, the bond qualifies as a liquid asset for liquidity ratio calculation for banks and after it is issued to subscribers, the bond will be listed on the Nigerian Stock Exchange (NSE).

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 dipo.olowookere@businesspost.ng

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