DMO to Sell First FGN Savings Bonds of 2023 at 10.60%

January 3, 2023
FGN Savings Bond

By Aduragbemi Omiyale

The Debt Management Office (DMO) has opened a subscription for the Federal Government of Nigeria (FGN) savings bonds for January 2023.

It is the first of the year, and it comes in two different maturities; two years and three years, according to a circular released by the debt office.

Interested retail investors have till noon on Friday, January 6, 2023, to purchase the debt instruments designed specifically for them.

The DMO said it is offering the 2-year FGN savings bond maturing on January 11, 2025, at 9.60 per cent and the 3-year paper maturing on January 11, 2026, at 10.60 per cent.

The coupons, according to the disclosure, would be paid quarterly on every April 11, July 11, October 11, and January 11 until the maturing dates, when the bullet payment would be made.

To purchase the notes, created for low-income earners, an investor must pay at least N5,000 for five units of the instruments, with the maximum investment at N50 million.

The bonds can be bought through registered brokerage companies, which usually require their clients to pay into their bank accounts.

The FGN savings bond, which is tax-free, is backed by the full faith and credit of the Nigerian government.

It qualifies as securities in which trustees can invest under the Trustee Investment Act and can act as a liquid asset for liquidity ratio calculation for banks.

The paper, after it is sold to investors, would be listed on the Nigerian Exchange (NGX) Limited to allow those who intend to sell before the maturing dates to do so.

Aduragbemi Omiyale

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

Leave a Reply

signs 2023 budget
Previous Story

Buhari Signs 2023 Budget of N21.8trn into Law

Next Story

Buhari Promises Burundi Energy Supply

Latest from Economy

Don't Miss