Nigeria Increases Coupon for Savings Bond to Attract Investors

Image

By Aduragbemi Omiyale

In order to attract investors, especially at the beginning of the year when some look for money to address pressing obligations, the Debt Management Office (DMO) is offering a higher coupon rate for the Federal Government of Nigeria (FGN) savings bond.

The debt office, in a circular, has called for subscriptions for the January FGN savings bond and it is selling the investment tool in two maturities as it normally does.

According to the notice, the 2-year FGN savings bond maturing on January 19, 2024, will go for 7.54 per cent per annum, while the 3-year FGN savings bond expected to mature on January 19, 2025, will sell for 8.54 per cent per annum.

At the previous exercise, which took place last month, the 2-year bond was offered at 7.32 per cent, while the 3-year bond went for 8.32 per cent.

Subscription for the two papers opened on Monday, January 10, 2022, and will close on Friday, January 14, 2022, with the coupon payment dates fixed for April 19, July 19, October 19, January 19 of every until maturity.

Intending subscribers are required to get in touch with accredited stockbrokers and buy the notes 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.

The FGN savings bond is backed by the full faith and credit of the Nigerian government and is charged upon the general assets of the country.

The bond qualifies as securities in which trustees can invest under the Trustee Investment Act and also qualifies as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds, amongst other investors.

The FGN savings bond further qualifies as a liquid asset for liquidity ratio calculation for banks and after the sale at the primary market, it would be listed on the Nigerian Exchange (NGX) Limited to provide an exit route for investors who wish to sell before maturity at the secondary market.

Share
Related Stories
Image
29-February-2024

NGX Falls by 1.27% as Traders ‘Protest’ CBN Rate Hike

By Dipo Olowookere The decision of the Central Bank of Nigeria (CBN) to push the anchor interest rate higher by 4.00 per cent to 22.75 per cent from 18.75 per cent on Tuesday had a toll on the Nigerian Exchange (NGX) Limited on Wednesday. Yesterday, the stock market lost 1.27 per cent after investors cut down their exposure to equities in reaction to the monetary policy announcement of the apex bank a day earlier. The bourse suffered selling pressure during the session, seeing all the major sectors closing in the red territory, with the banking index falling by 6.90 per

Image
29-February-2024

Crude Oil Mixed on Undecided US Interest Rates Move, High Inventories

By Adedapo Adesanya Crude oil futures settled mixed on Wednesday after the US Federal Reserve held firm on its decision to hold off cutting interest rates soon while growing crude stockpiles in the world’s largest producer added further pressure. Brent crude futures settled 3 cents higher, or up 0.04 per cent at $83.68 a barrel while the US West Texas Intermediate futures (WTI) settled 33 cents lower, or down 0.42 per cent at $78.54. The market was unsteady over signs that interest rates in the world’s largest economy would remain elevated. US Federal Reserve Bank of New York President John

Image
01-March-2024

How to Protect Your Crypto From Scams, Hacks

In 2023, it is estimated around $2 billion was lost by investors to scams, rug pulls and hacks. Although the technology is becoming more secure and stable and many users are more aware of the tricks used to steal assets, there are still ways for thieves to extract your crypto if you aren’t careful.   Experts at Smart Betting Guide have provided a guide on the best ways to keep your crypto safe in 2024.  1. Do not store your password and seed phrase on the Cloud   For many people, the best and most convenient way to access crypto is through

Image
01-March-2024

Oil Down as US Inflation Signals Weak Crude Demand

By Adedapo Adesanya  Oil was down on Thursday as inflation data in the United States implied a softening of the world’s biggest economy that could weaken crude demand. Brent futures went down by 6 cents to $83.62 a barrel and the US West Texas Intermediate (WTI) futures depreciated by 28 cents to $78.26 a barrel. The US Federal Reserve’s preferred inflation gauge, the US Personal Consumption Expenditures (PCE) index, showed January inflation in line with economists’ expectations. The index rose 0.3 per cent last month, the Commerce Department’s Bureau of Economic Analysis said. Data for December was revised lower to

More Stories
Image
29-December-2023

NGX Seeks Nollywood Partnership to Boost Retail Investor Activity

By Aduragbemi Omiyale The chief executive of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, is looking for ways the Nigerian film industry, popularly known as Nollywood, can use its influence to deepen retail investor activity in the nation’s capital market. Speaking at a ceremony to close the last trading day of 2023 on the floor of the exchange on Friday, he said stakeholders in the movie sector, especially filmmakers, can use the capital market to raise funds for their big-budget projects. According to him, it is one avenue Nollywood can explore to source funds for their films, which are

Image
21-August-2020

Some Firms Are Abusing Pioneer Incentive Scheme—FIRS

By Adedapo Adesanya The Federal Inland Revenue Service (FIRS) has raised an eyebrow over what it called the systemic abuse of the pioneer incentive scheme instituted by the federal government, saying it is leading to tax revenue leakages for the three tiers of government. This was made known by the Executive Chairman of the tax body, Mr Muhammad Nami, during a meeting with State Commissioners of Finance at the Revenue House, headquarters of the FIRS in Abuja. In a statement signed by the Director, Communications and Liaison Department, Mr Abdullahi Ahmad, the FIRS reiterated its vow to plug this tax

Image
15-April-2023

Naira Gains at P2P, Black Market, Falls at I&E

By Adedapo Adesanya It was a mixed bag for the Naira at the Peer-2-Peer (P2P), black market and the Investors and Exporters (I&E) arms of the foreign exchange (FX) market on Friday, April 14. Data indicated that the domestic currency closed stronger against the greenback in the first two market segments but was weakened in the third market window. In the P2P category of the forex market, the value of the local currency was fortified against its American counterpart yesterday by N2 as it finished at N748/$1 compared with the previous day’s value of N750/$1. Also, in the parallel market,

Image
09-August-2016

Sterling Bank Launches Back-to-School Campaign

Relief may have come the way of parents, guardian, teachers and proprietors of schools in Nigeria as Sterling Bank Plc launches it’s the Back-To-School Campaign. The campaign is aimed at providing succour for all stakeholders in the sector as schools resume in September. The primary target for the campaign are the primary and secondary schools (administrators, owners and teachers) while the secondary audience are all primary and secondary school-students and their parents. Areas covered under the campaign include School financing, Asset Finance, Textbook and Educational Materials Finance for schools; School fees finance for parents; Coding and Robotics Summer Boot Camp

Image
13-January-2023

364-Day Treasury Bill Stop Rate Clears 1.19% Lower at Primary Market

By Dipo Olowookere The stop rate of the 364-day treasury bill was sold to investors at the primary market on Wednesday, 1.19 per cent lower than the rate of the previous session. Business Post reports that the debt instrument, sold by the Central Bank of Nigeria (CBN) for the Nigerian government, cleared at 7.30 per cent as against 8.49 per cent in the preceding session. It was observed that the apex bank pounced on the strong appetite for the asset class to review the rate down during the session. This action was witnessed across the other tenors offered for sale

Image
17-September-2021

Shortage of Foreign Workers Rattles Russia

By Kester Kenn Klomegah Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov, in an interview published this mid-September in the newspaper Izvestia, widely circulated and reputable Russian media, lamented that Moscow is still experiencing a shortage of foreign workers at construction sites, now there is a shortage of about 200,000 people. “This problem remains today Moscow lacks about 200,000 migrants. And we hope that in the near future, the restrictions on their entry into the country will be softened,” Yefimov said, answering the question of the publication whether the issue of the shortage of

Image
04-September-2022

EU Prepares for Life After Cut in Russian Gas Supply

By Adedapo Adesanya The European Union (EU) has revealed that it is “well prepared” in the event of a total halt in Russian gas deliveries, thanks to storage capacity and energy-saving measures. This was disclosed by the EU Economy Commissioner, Mr Paolo Gentiloni on Saturday, who further stated that the bloc was ready to stand its ground following decisions it took after Russia invaded neighbouring Ukraine in February. “We are well prepared to resist Russia’s extreme use of the gas weapon,” he told reporters on the sidelines of an economic forum organised by The European House – Ambrosetti. “We are

Image
04-November-2017

Naira Crashes Against Dollar Across Most Market Segments

By Cowry Asset In the just concluded week, the local currency appreciated week-on-week in most foreign exchange market segments. The Naira depreciated against the US Dollar by at the Investors & Exporters Forex Window (I&E FXW) by 0.06 percent to N360.25/USD while it weakened by 0.05 percent to N329.42/USD at the interbank market (NIFEX). This was despite injections by the CBN worth $195 million into the foreign exchange market of which $100 million was allocated to Wholesale (SMIS), $50 million was allocated to Small and Medium Scale Enterprises and $45 million was sold for invisibles. The Naira however closed steady

Ad
Ad
Recent Stories
Image
01-March-2024

Risevest Suspends Crypto Payment as Clampdown Intensifies

By Adedapo Adesanya Foreign stocks trading and investment firm, Risevest, has voluntarily announced a temporary suspension of cryptocurrency assets in Nigeria until the current wave of clampdown on operations settles. In a notice sent to customers on Friday and seen by Business Post, the platform said users won’t be able to fund their wallets using cryptocurrency as it allowed. The company revealed that it noticed that there has been an uptick in funding and possible gaming of the system, and warned against this. “We’re temporarily suspending crypto funding on Rise for users in Nigeria, pending clarity on the regulatory landscape.

Image
01-March-2024

Foreign Capital Into Nigeria’s Energy Industry Plunges 42.8% to $3.64bn in 2023

By Adedapo Adesanya Foreign capital inflows, which gauges the level of foreign investment into the country, through the Nigerian oil and gas industry in 2023 dropped by 42.8 per cent to $3.64 million from the $6.37 million recorded in 2022. This is contained in the latest data obtained from the Nigeria capital importation report for the fourth quarter of 2023 released recently by the National Bureau of Statistics (NBS). The NBS revealed that total foreign capital inflow into the oil and gas sector in 2023 accounted for 0.09 per cent of total foreign capital inflow into the Nigerian economy in

Image
01-March-2024

Reps Investigate Nigeria’s Public Private Partnerships, Concessions Since 1999

By Adedapo Adesanya The House of Representatives is investigating and executing performance assessments of Public Private Partnerships (PPP) and concession agreements in the country since 1999. At a hearing of the Joint Committees on Public Assets and Special Duties on Thursday in Abuja, the Speaker of the House, Mr Tajudeen Abbas, said the objective was to meticulously dissect the triumphs, challenges, and overall impact of PPPs and concession agreements on our public infrastructure and services. “While PPPs have indeed played a crucial role in propelling development, it is imperative that their effectiveness undergoes a comprehensive analysis. “Therefore, this hearing presents

Image
01-March-2024

Jose Peseiro Exits Position as Super Eagles Coach

By Dipo Olowookere Portuguese tactician, Mr Jose Peseiro, has left his job as the coach of Nigeria’s male football national team, the Super Eagles. He exited the team barely a month after he led the country to the final of the 2023 Africa Cup of Nations (AFCON) hosted by Cote d’Ivoire. The host nation defeated Mr Peseiro’s men by 2-1 from a goal down in the final to lift the trophy. The Super Eagles had beaten the Elephants in the group stage of the tournament by a lone goal before meeting again in the final. Before the competition ended, there

Image
01-March-2024

Nigeria Wants Share in $350bn Global Outsourcing Market

By Aduragbemi Omiyale The global outsourcing market is estimated to be worth about $350 billion and Nigeria is looking to take a slice of it to address the rising unemployment rate in the country. Before 2023, the National Bureau of Statistics (NBS) put the unemployment rate at about 33 per cent, but in its revised edition, the agency said the rate grew to 5.0 per cent in the third quarter of last year. The outsourcing market is becoming the new oil market and Nigeria, which prides itself as the largest economy in Africa because of its population size of over

Image
01-March-2024

Lokpobiri Charges New NCDMB Council on Growth of Nigeria’s Energy Sector

By Adedapo Adesanya  The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has charged the newly inaugurated fourth Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB) to continue advancing the country’s oil and gas industry. The NCDMB Governing Council is set up under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and draws membership from representatives of select institutions connected with the energy sector. The fourth NCDMB Governing Council would be chaired by Mr Lokpobiri, while the Executive Secretary of NCDMB, Mr Felix Omatsola Ogbe, would serve as the Secretary. Others are the

Image
01-March-2024

How to Protect Your Crypto From Scams, Hacks

In 2023, it is estimated around $2 billion was lost by investors to scams, rug pulls and hacks. Although the technology is becoming more secure and stable and many users are more aware of the tricks used to steal assets, there are still ways for thieves to extract your crypto if you aren’t careful.   Experts at Smart Betting Guide have provided a guide on the best ways to keep your crypto safe in 2024.  1. Do not store your password and seed phrase on the Cloud   For many people, the best and most convenient way to access crypto is through

Image
01-March-2024

FX Crisis: Nigeria May Slam $10bn Fine on Binance

By Adedapo Adesanya The Nigerian government may be considering a $10 billion fine on Binance, a crypto exchange platform, amid a crackdown on crypto platforms in desperate moves to restore the nation’s battered foreign exchange (FX) market. This information was disclosed by Mr Bayo Onanuga, who is the Special Adviser on Information and Strategy to President Bola Tinubu, in an interview with the British Broadcasting Corporation (BBC) on Friday morning. According to the President’s aide, this was necessary as the Nigerian government believes Binance profited substantially from its “illegal transactions” in the country while the nation suffered huge losses. Mr

Image
01-March-2024

Business Confidence in Nigeria Falls in February Amid Rise in Input Costs

By Modupe Gbadeyanka Business conditions in Nigeria slowed to 51.0 in February 2024 from 54.5 in January 2024, as price pressures intensified in the private sector at an unprecedented pace in over a decade of data collection, the Stanbic IBTC Bank Purchasing Managers’ Index (PMI) has revealed. A statement from the lender disclosed that the improvement in business conditions was the weakest since the recovery in the private sector began last December. It stated that input costs surged higher in the period under consideration as a result of higher fuel prices and exchange rate weakness, which drove up material costs.

Image
01-March-2024

Harvard Business School Introduces Tony Elumelu Foundation Case Study

By Modupe Gbadeyanka A case study to spotlight the role of celebrated African businessman, Mr Tony Elumelu, in transforming the development agenda on the continent through his Tony Elumelu Foundation (TEF) has been introduced by the Harvard Business School. The case study, launched on Thursday, February 29, 2024, will critically look into how the former banker is catalysing entrepreneurship in Africa through his Africapitalism approach. At its unveiling before a class of graduate students at Harvard Business School, Mr Elumelu said, “TEF is creating economic hope and opportunity for African entrepreneurs. We know that entrepreneurship is the solution to youth