The Debt Management Office (DMO) has opened the window to investors, so those who are interested in purchasing the FGN savings bond should get in touch with their brokerage companies.
Low-income individuals can invest in the fixed-income market and make money while helping the government generate money to cover budget shortfalls thanks to the retail government debt instrument, which is made for them.
Since the FGN savings bond qualifies as a government security under the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA), among other tax laws, it is not subject to taxes.
It also meets the requirements for securities under the Trustee Investment Act and can be utilized as a liquid asset for banks to calculate their liquidity ratio.
Above all, the debt instrument is secured by the general assets of Nigeria and the full faith and credit of the Federal Government of Nigeria, ensuring that investors will receive their money back at maturity.
The debt office said on Monday that the paper’s subscription period began yesterday and will finish on Friday, May 5, 2023.
The notes are being sold by the DMO in two different tenors, two and three years, with the shorter bond being issued at a coupon rate of 10.39% per year and the longer paper being sold at 11.39% per year.
Five units of the FGN savings bonds must be purchased for a minimum of N5,000; additional units must be purchased in multiples of N1,000 up to a total subscription of N50 million.
The bonds would be posted on the floor of the Nigerian Exchange (NGX) Limited following the sale to make it simple for investors to withdraw their money and for potential later buyers to purchase them.
The interest would be paid to subscribers on August 10, November 10, February 10, and May 10 of each year.
