N1000 per unit FGN savings bonds on offer by DMO

Dent Management Office, DMO, has put on offer two new Federal Government of Nigeria FGN, savings bonds at N1,000 per unit for the month of September. According to the DMO, on its website, the first one is a two-Year FGN Savings Bond due in Sept. 14, 2024, at interest rate of 11.04 per cent per annum, while the second offer is a three-year FGN savings bond due in Sept. 14, 2025, at interest rate of 12.04 per cent per annum

The it “offer” said “opens on Sept. 5 and closes on Sept. 9. Settlement date is Sept. 14, while coupon payment dates are Dec. 14, March 14, June 14 and Sept. 14. They are subject to a minimum subscription of N5,000, and multiples of N1,000 thereafter, and subject to a maximum subscription of N50 million. Interest payment is made quarterly, while bullet repayment (principal amount) will be made on the maturity date,” it said.

It added that the the FGN savings bonds qualified as securities in which trustees could invest under the Trustee Investment Act. “It also qualifies as government securities within the meaning of Company Income Tax Act CITA and Personal Income Tax Act, PITA for Tax Exemption for Pension Funds, among other investors. It is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,” the DMO said.