The Federal Government of Nigeria, through the Debt Management Office (DMO), has announced the issuance of two new savings bonds, designed to provide attractive investment opportunities for Nigerians while supporting national development initiatives.
The first bond, with a two-year tenor, offers an annual interest rate of 17.23% and is set to mature in January 2027. The second bond, a three-year option, provides an annual return of 18.23% and will mature in January 2028. Subscriptions for both bonds will open from January 13, 2025, and close on January 17, 2025, with their commencement scheduled for January 22, 2025. Interest payments will be disbursed quarterly in April, July, October, and January.
These savings bonds come with several distinctive benefits. They are exempt from personal and corporate income taxes, enhancing their appeal to individual and institutional investors. Eligible purchasers include entities such as pension funds and trustees. The bonds are priced at N1,000 per unit, with a minimum purchase requirement of N5,000 and a maximum limit of N50,000,000, ensuring accessibility for a broad spectrum of investors.
As investments backed by the full faith and credit of the Federal Government of Nigeria, these bonds offer exceptional security and reliability, making them an attractive choice for those seeking stable returns.
This announcement follows a recent initiative by the DMO in September, where the government floated three bonds valued at N150 billion, underscoring its commitment to leveraging the domestic capital market to fund critical national projects.
