The Federal Government of Nigeria has introduced a fresh series of savings bonds, offering investors a secure and lucrative avenue for their investments. The announcement was made by the Debt Management Office (DMO) Nigeria, the government agency responsible for managing Nigeria’s debt.
According to the DMO, “these savings bonds will be available for subscription from February 5th to 9th, 2024. The bonds come in two variants: a 2-year bond and a 3-year bond. Investors can expect competitive yields with an interest rate of 12.751% for the 2-year bond and 13.751% for the 3-year bond, with interest payments made on a quarterly basis”.
To participate, interested investors can subscribe to a minimum of 5,000 Naira, with subsequent multiples of 1,000 Naira up to a maximum limit of 50,000 Naira. At maturity, the principal amount will be repaid in full. The bonds are classified as government securities and are eligible for tax exemption for pension funds, in accordance with the Trustee Investment Act, Company Income Tax Act (CITA), and Personal Income Tax Act (PITA).
Furthermore, the savings bonds are listed on the Nigerian Exchange Limited, making them a liquid asset for banks to include in their liquidity ratio calculations. The DMO emphasized that these bonds are backed by the full faith and credit of the Federal Government of Nigeria and are secured against the general assets of the country.
Investors who wish to participate in this opportunity are advised to contact the designated stocking firms appointed as distribution agencies by the Debt Management Office.
By introducing these new savings bonds, the Federal Government aims to provide investors with a secure and profitable investment option while stimulating economic growth and development in Nigeria.
Via Guardian.