By Kemi Adeyemi,Abuja
The Debt Management Office (DMO) has opened offers for subscription on two Federal Government of Nigeria (FGN) savings bonds in February at an interest rate of 17.799 per cent and 18.799 per cent respectively.
The DMO, in a statement on Monday, said the first offer is a two-year savings bond due on February 12, 2027, at an interest rate of 17.799 per cent.
The second offer is a three-year FGN savings bond due on February 12, 2028, at an interest rate of 18.799 per cent.
The bonds opened yesterday and are expected to close on February 7. The settlement date is February 12, 2025, while coupon settlement dates are May 12, August 12, November 12 and February 12.
“They are offered 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.
“Interest is payable quarterly while bullet repayment (principal sum) is on the maturity date,” the DMO said.
The bonds are backed by the full faith and credit of the FG and charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustee Investment Act,” it noted, adding that they also qualify as government securities within the context of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.
The debt management office added that they are listed on the Nigerian Exchange Limited and qualify as liquid assets for liquidity ratio calculation for banks.
On January 27, the DMO raised N669.94 billion from the January 2025 FGN bond auction. The amount was higher than the N450 billion original target by N219.94 billion.
Last year, the FG borrowed an estimated N5.84 trillion from the bond market amid a move to bridge its 2024 budget deficit.
However, the figures represent a 0.17 per cent decline when compared to the N5.85 trillion borrowed in 2023 through the window.
Total subscription to FG bonds was N7.09 trillion in 2024 despite a total offer of N5.72 trillion.
This year, the country is hoping to borrow more to finance its estimated N13.08 trillion deficit.
