In a circular issued on Monday, the DMO stated that it is now offering the Federal Government’s two-year and three-year savings bonds.
The circular, headed “FG savings bond offer for subscription September 2021”, was placed on the company’s website.
The two-year FGN savings bond would mature on September 15, 2023, at 7.915 per cent annually, while the three-year offer will mature on September 15, 2024, at 8.915 per cent per annum, according to the circular.
The promotion began on Monday and will end on September 10.
According to the circular, the bonds have coupon payment dates of December 15, March 15, June 15, and September 15, while the settlement date is September 15.
The units of sale are N1,000 each, with a minimum subscription of N5,000 and further subscriptions in multiples of N1,000 up to a maximum of N50,000,000.
The interest is paid on a quarterly basis, with a bullet repayment due on the maturity date.
The bonds qualify as securities in which trustees can invest under the Trustee Investment Act, as well as a liquid asset for banks’ liquidity ratio calculations, according to the circular.
The bonds are listed on the Nigerian Stock Exchange and qualify as government securities for tax exemption for pension funds under the Company Income Tax Act and the Personal Income Tax Act.
Recall that, The Debt Management Office (DMO) has refuted a report that named Nigeria as one of the countries with the highest debt levels in the world.
In a statement issued yesterday, the DMO stated that its attention was attracted to an article with the headline “World Bank identifies Nigeria and nine other high-debt risk nations”.
According to the magazine, the World Bank has classified Nigeria as one of the top ten ‘high-debt risk nations’ in the International Development Association (IDA) Audited Financial Statement for Fiscal Year 2021 (July 1, 2020 – June 30, 2021), which was published on Monday, August 9, 2021.
The Debt Management office insists the publication of the newspaper is not only incorrect and deceptive but also demonstrates a lack of comprehension of the essence of the World Bank’s report.