By KADIRI ABDULRAHMAN

The Debt Management Office (DMO), on behalf of the Federal Government, has offered two FGN Savings Bonds for subscription at N1,000 per unit

According to a statement by the DMO on Monday in Abuja, the first offer is a two-year FGN Savings Bond due on June 11, 2027 at interest rate of 16.121 per cent per annum.

The second offer is a three-year FGN Savings Bond due on June 11, 2028 at interest rate of 17.121 per cent per annum.

?Offer opens on June 2 and closes on June 6; settlement date is June 11 while coupon payment dates are Sept. 11, Dec. 11, March 11 and June 11.

?They are offered at N1,000 per unit, with a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

?Interest is payable quarterly while bullet repayment (principal sum) is on maturity,? it said.

It assured that FGN savings bonds are backed by the full faith and credit of the FGN, and charged upon the general assets of Nigeria.

?They qualify as securities where trustees can invest under the Trustee Investment Act.

?They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.

?They are listed on the Nigerian Exchange Limited and qualify as liquid assets for liquidity ratio calculation for banks,? it said.

The News Agency of Nigeria (NAN) reports that FGN Savings Bonds are a government-backed security issued by the DMO on behalf of the Federal Government.

They are designed to provide a safe and accessible investment opportunity for individuals and small-scale investors.

They are considered one of the safest investments in Nigeria because there is virtually no default risk.

They offer fixed interest rates, providing predictable returns, and unlike general FGN Bonds that often have high minimum subscription amounts, FGN Savings Bonds are tailored for retail investors, allowing for lower entry barriers.

The funds raised from these bonds are used by the government to finance various projects and budget deficits. (NAN)

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