The sale of FGN savings bond for May 2026 will close today, Friday, May 8, Business Post reports.
The exercise commenced on Monday, with the Debt Management Office (DMO) offering the debt instrument in two maturities of two years and three years.
According to the circular from the DMO, the shorter paper is being offered at a coupon of 13.525 per cent, while the longer note is 14.525 per cent. The interest on the investment is paid to investors every quarter.
The retail bond is sold at a unit price of N1,000, 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 Federal Government of Nigeria and charged upon the general assets of the country.
It qualifies as securities in which trustees can invest under the Trustee Investment Act, and is tax-free as it 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.
After the exercise, the bonds are taken to the Nigerian Exchange (NGX) Limited for listing, allowing investors who want to liquidate the paper before maturity to sell to others at the secondary market.