The Debt Management Office (DMO) has asked retail investors interested in investing in the FGN savings bonds to begin to talk to their financial advisers.
This is because subscription for the retail bonds for March 2026 has commenced and will close on Friday, March 6, according to a circular issued by the agency on Monday.
The debt office is selling two tenors of the debt instrument, with the shorter note maturing in two years’ time and the longer maturing a year later.
Details of the notice showed that the two-year paper is being offered at a coupon of 12.906 per cent, and the three-year paper at 13.906 per cent.
Both notes are sold at a unit price of N1,000, with a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million. They can be purchased via approved stockbroking firms in Nigeria.
The FGN savings bond qualifies as a security in which trustees may invest under the Trustee Investment Act. It also serves as government securities within the meaning of the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA) for tax exemption for pension funds, amongst other investors.
It can be used as a liquid asset for liquidity ratio calculation for banks, and is listed on the Nigerian Exchange (NGX) Limited for trading at the secondary market.
The bond is backed by the full faith and credit of the Federal Government of Nigeria (FGN) and charged upon the general assets of the country.