The Debt Management Office (DMO) has commenced offering the April 2024 Savings Bond on behalf of the Federal Government, featuring an attractive interest rate of 18.046% per annum.
As disclosed by the DMO, the 2-year FGN Savings Bond will be issued at 17.046% per annum, while the 3-year FGN Savings Bond will offer a higher rate of 18.046% per annum.
FGN Savings Bonds, issued monthly by the DMO, are accessible to investors with a subscription rate of N1000 per unit, subject to a minimum subscription of N5,000 and subsequent multiples of N1,000, with a maximum subscription limit of N50,000,000.
Interest payments for the April 2024 bonds will be made quarterly, scheduled on July 9, October 9, January 9, and April 9. These bonds are recognized as investment instruments for trustees under the Trustee Investment Act and benefit from tax exemption privileges for pension funds under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA) due to their classification as government securities.
The decision to offer Savings Bonds at a rate of 18.046% reflects the strategic direction pursued by the DMO and the Central Bank of Nigeria (CBN) in 2024, aimed at tackling rising inflationary pressures.
Previous issuances in March 2024 saw the DMO raise approximately N2.9 billion worth of Savings Bonds at 15.097% and 16.097% for the 2-year and 3-year bonds, respectively. In February 2024, N2.43 billion worth of Savings Bonds were issued at rates of 12.751% and 13.751% for the 2-year and 3-year bonds, respectively.
The April 2024 Savings Bonds offering presents an opportunity for investors to secure attractive returns while contributing to the government’s efforts to manage inflation and promote economic stability.
