The Debt Management Office (DMO) has unveiled its latest opportunity for investors with the launch of the Federal Government of Nigeria (FGN) savings bonds for March 2024, featuring attractive interest rates of up to 16.097%.
According to an announcement posted on the DMO’s official website, the subscription window for these bonds opened on March 4th and will remain accessible until March 8th, 2024, providing investors with five days to participate.
Bond Details
Investors have the option to choose between two-year and three-year FGN savings bonds, each offering competitive interest rates:
- The two-year bond, maturing on March 13, 2026, comes with an annual interest rate of 15.097%.
- Meanwhile, the three-year bond, due on March 13, 2027, offers a higher annual interest rate of 16.097%.
Furthermore, the settlement date for these bonds is scheduled for March 13, with interest payments set to occur on June 13, September 13, December 13, and March 13 annually.
Subscription Units and Guidelines
Interested investors can participate by subscribing in units of N1,000 each, with a minimum subscription requirement of N5,000. Subsequent investments can be made in multiples of N1,000, up to a maximum subscription limit of N50,000,000.
Prospective investors are encouraged to collaborate with authorized securities brokerage firms recognized by the DMO to engage in the subscription process. These bonds will be traded on the Nigerian Exchange Group (NGX).
Benefits and Tax Exemption
FGN savings bonds are deemed as suitable investment instruments for trustees, as per the Trustee Investment Act. Moreover, government securities qualify for tax exemptions for pension funds under the provisions of the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA).
In summary, launching these FGN savings bonds presents a compelling opportunity for investors seeking secure and rewarding investment avenues, aligning with the government’s efforts to promote savings culture and stimulate economic growth.
