The Federal Government, through the Debt Management Office, has introduced two new savings bonds. Investors can earn 17.23% per annum on a two-year bond maturing in January 2027 and 18.23% per annum on a three-year bond maturing in January 2028.
Subscription for the savings bonds will run from January 13 to January 17, 2025, with settlement scheduled for January 22, 2025. Quarterly interest payments are set for April 22, July 22, October 22, and January 22. These bonds, exempt from taxes under the Company and Personal Income Tax Acts, are open to trustees, pension funds, and institutional investors. Priced at N1,000 per unit, subscriptions range from a minimum of N5,000 to a maximum of N 50 million.
The Debt Management Office (DMO) emphasized that FGN bonds are guaranteed by the full faith and credit of the Federal Government of Nigeria and are secured against the country’s general assets. “They qualify as securities in which trustees can invest under the Trustee Investment Act,” the DMO stated. “They also qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act, allowing for tax exemption for pension funds and other investors.”
