The Debt Management Office (DMO) has announced the resumption of its Offer of the Federal Government of Nigeria Savings Bond (FGN Savings Bond) effective August 2020.

The DMO was constrained to suspend the Monthly Offers of the FGN Savings Bond in April 2020 due to the restrictions on activities and movement as part of measures adopted by the Government to curtail the spread of Covid 19.

The Offer for Subscription opened on Monday August 10, 2020 will close on Friday August 14, 2020.

The Offer:

  • 2 Years FGN Savings Bond due August 12, 2022 @ 3.61% per annum.
  • 3 Years FGN Savings Bond due August 12, 2023 @ 4.61% per annum.

✓ Investment Type: Fixed Income Investment with a fixed interest rate.

✓ Frequency of Issuance: Subsequent Auction will be on the first Monday of every month.

✓ Subscription Size: Minimum subscription amount is N5,000.00 with additions in multiples of N1,000.00 subject to a maximum of N50 million.

✓ Listing: The Nigerian Stock Exchange (NSE) will serve as an active secondary market for the Bond, thereby providing liquidity to subscriber who wish to redeem their capital before maturity.

BENEFITS:

  1. It offers guaranteed returns if held till maturity.
  2. Minimum Investment is N5,000.00 which encourages financial inclusion among low income households.
  3. It offers competitive interest rate compared to savings accounts.
  4. The interest income earned from the securities are tax exempt ( tax free).
  5. The FGN Savings Bond Certificate can can be used as collateral for loan.
  6. The Savings Bond is backed by the Federal Government (FGN), and thus can be termed ‘Risk Free’.