The Federal Government has officially opened the subscription window for two tranches of its December Savings Bonds, the Debt Management Office has confirmed. Okay News reports that this announcement was made in a statement released on Wednesday.
According to the Debt Management Office, the subscription includes a two-year Federal Government of Nigeria Savings Bond maturing on December 10, 2027, which carries an annual interest rate of 12.838 percent. Additionally, a three-year bond due in December 2028 is offered with an annual yield of 13.839 percent.
The DMO stated, “Opening date is December 1, settlement date is December 10, while coupon payment dates are March 10, June 10, and December 10. 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 on these bonds is payable quarterly, while the principal sum will be repaid in full on the maturity date. The agency emphasized that, like all Federal Government securities, these bonds are fully guaranteed by the government.
The bonds qualify as investment options under the Trustee Investment Act, making them suitable for trustees, pension funds, and other institutional investors. They also benefit from tax exemptions under the Company Income Tax Act and the Personal Income Tax Act. Furthermore, the bonds are listed on the Nigerian Exchange Limited and are recognized as liquid assets for banks’ liquidity ratio calculations.
