The Debt Management Office has announced two federal government savings bonds for subscription at N1,000 per unit.

According to a statement by the DMO on Tuesday, the first offer is a two-year bond due on September 16, 2028, at an interest rate of 14.12 per cent per annum.

The second offer is a three-year bond due on September 16, 2029, at an interest rate of 15.12 per cent per annum.

It said the offer opened on September 7, would close on September 11, and would settle on September 16, with coupon payments on December 16, March 16, June 16, and September 16.

“They are offered at N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million. Interest is payable quarterly, while bullet repayment is on the maturity date,” the DMO said.

It said the bonds, like all other government securities, are backed by the full faith and credit of the federal government and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustee Investment Act. They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for exemption for pension funds, amongst other investors. They are listed on the Nigerian Exchange Ltd., and they qualify as liquid assets for liquidity ratio calculation for banks,” it said.

The savings bonds are risk-free debt securities issued by the DMO on behalf of the Nigerian government. They are designed specifically for retail investors, and they allow individuals to earn guaranteed returns while lending money to the government for national development.

(NAN)