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Business News of Wednesday, 7 June 2023


Tinubu's government invites Nigerians to buy bonds with N1000 per unit

President Bola Ahmed Tinubu President Bola Ahmed Tinubu

The Debt Management Office (DMO) has announced two Federal Government of Nigeria (FGN) saving bonds for a subscription at N1,000 per unit.

According to a statement by DMO, the offer opens on June 3, 2023, and closes by June 9, 2023.

Nigerians to invest with as low as N1,000

The DMO stated that the first offer is a two-year FGN savings bond due on June 14, 2025, at an interest rate of 11.301% per annum.

TheCable reports that the DMO said the coupon dates are September 14, December 14, and June 14, respectively.

DMO said: “They are offered at N1,000 per unit subject to a maximum subscription of N5,000 and in multiples of N1,000 after that, subject to a maximum subscription of N50 million,” the statement reads.

“Interest is payable quarterly, and the bullet repayment (principal amount) is done on maturity.”

Bonds guaranteed by the Nigerian government

The debt office also stated that the latest offers have a settlement date of June 14, 2023.

The agency also noted that the FGN savings bonds were backed by the full faith and credit of the Nigerian government and charged upon the general assets of the country.

It said. “They qualify as securities in which trustees can invest under the trustee investment act,” DMO added.

“They qualify as government securities within the meaning of the company income tax act (CITA) and personal income tax act (PITA) for tax exemption, pension funds, amongst other investors.”

The office said the savings bonds are also listed on the Nigerian Exchange Limited and qualify as liquid assets for bank liquidity ratio calculation.