NGX Lists Two New FGN Savings Bonds

The Nigerian Exchange Limited (NGX) has officially listed two new Federal Government of Nigeria (FGN) savings bonds, offering retail investors a secure and lucrative investment opportunity.

These bonds, priced at N1, 000 per unit, were recently unveiled by the Debt Management Office (DMO) in Abuja.

As of August 12, investors can subscribe to these savings bonds, with the subscription period closing on August 16.

The listings include a two-year FGN savings bond, set to mature on August 21, 2026, with an annual interest rate of 17.373 percent. Additionally, a three-year FGN savings bond is available, maturing on August 21, 2027, and offering an annual interest rate of 18.373 percent.

These bonds have been designed with retail investors in mind, ensuring quarterly interest pay-outs and the full repayment of the principal upon maturity. With a settlement date set for August 21, investors can expect coupon payments on November 21, February 21, May 21, and August 21.

The NGX’s listing of these bonds underscores its role in providing accessible investment options to a broader segment of the Nigerian populace. The bonds are available for a minimum subscription of N5, 000, with subsequent investments in multiples of N1, 000, and a maximum subscription cap of N50 million.

The DMO emphasised that these FGN savings bonds are backed by the full faith and credit of the federal government and are secured by the nation’s general assets. Furthermore, their listing on the NGX enhances their liquidity, making them recognised as liquid assets for banks when calculating their liquidity ratios.

This initiative by the NGX and DMO is part of a broader strategy to promote financial inclusion and provide the public with secure and rewarding investment opportunities. Investors are encouraged to take advantage of these listings to diversify their portfolios and secure steady returns in the years to come.