DMO Launches FGN Savings Bonds With 17.48%, 18.48% Annual Interest Rates

The Debt Management Office (DMO) has launched two new Federal Government of Nigeria (FGN) Savings Bonds, offering Nigerians an attractive investment opportunity with competitive interest rates.

These bonds, backed by the full faith and credit of the federal government, aim to provide a secure and profitable option for individual and institutional investors alike.

According to the office, the first option is a 2-year bond maturing on December 11, 2026, with an annual interest rate of 17.483 percent. The second is a 3-year bond set to mature on December 11, 2027, offering a slightly higher interest rate of 18.483 percent per annum.

Subscription for these bonds opened on December 2, 2024, and will close on December 6, 2024, with the settlement date scheduled for December 11. Investors can purchase the bonds in units of ₦1,000, starting from a minimum investment of ₦5,000 and up to a maximum of ₦50 million. The bonds will be redeemed in full upon maturity, with interest payments made quarterly on March 11, June 11, September 11, and December 11 each year.

In addition to competitive returns, these bonds come with several advantages. They qualify as securities under the Trustee Investment Act, and interest earned is exempt from taxation under the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA). The bonds are also listed on the Nigerian Stock Exchange, making them tradable and providing liquidity for investors. Furthermore, they count as liquid assets for banks when calculating liquidity ratios, enhancing their value in the financial sector.

The DMO emphasised that the bonds are designed to meet the investment needs of Nigerians while contributing to the growth and stability of the financial markets. Interested investors are encouraged to contact any of the stockbroking firms appointed as distribution agents for the bonds. A full list of these agents is available on the DMO’s official website: www.dmo.gov.ng http://www.dmo.gov.ng .