DMO DG Ms Patience Oniha

DMO Offers FG Saving Bonds For Subscription At N1,000 Per Unit

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DMO Director-General Ms Patience Oniha

Debt Management Office (DMO) has announced an offering for the Federal Government of Nigeria savings bonds at N1,000 per unit.

The savings bond offer that was issued by the DMO on behalf of the federal government targeted retail investors with a guaranteed interest payment.

It was suspended last year for four months due to the effect of COVID-19 lockdown which later resumed the monthly offerings in August 2020.

According to a circular on DMO’s website, the two year FGN savings bonds will be due for redemption on August 11, 2023, at 8.86% per annum while the three-year will be due to August 11, 2024, at 9.86% per annum.

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It said, “The settlement date is August 11 and the bonds have November 11, February 11, May 11, and August 11 as coupon dates.”

The units of sale are 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 N50,000,000.

The interest rate is payable quarterly with bullet repayment expected on the maturity date.

DMO also said the offer qualified as government securities within the meaning of the Company Income Tax Act (CITA) and Personal In one Tax Act (PITA) for tax exemption for pension funds, amongst other investors.

The offer also qualified as securities in which trustees can invest under the Trustee Investment Act.

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The DMO assures that the offer was by credit of the federal government of Nigeria and charged upon general assets of Nigeria.

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