The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria has published February 2023 FGN Savings Bond offer for subscriptions for 2-year and 3-year tenor.
The interest rates for the February offer are higher than the rates offered by the DMO in January 2023, reversing decline in interest rate that started in December 2022.
January 2023 rates were 9.60% per annum for 2-year and 10.60% per annum for 3-year savings bond.
FGN Savings Bond is backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.
For February 2023, the DMO offers:
- 2-Year FGN Savings Bond due February 15, 2025: 10.043% per annum
- 3-Year FGN Savings Bond due February 15, 2026: 11.043% per annum
Opening Date: February 6, 2023
Closing Date: February 10, 2023
Settlement Date: February 15, 2023
Coupon Payment Dates: May 15, August 15, November 15, February 15
The rates for the December offer were 0.237% lower than the rates offered in November 2022 for both the 2-year and 3-year bonds., halting the rising rates in recent months.
November rates were 12.492% per annum for 2-year and 13.492% per annum 3-year FGN savings bonds.
October rates were 11.382% per annum for 2-year and 12.382% per annum for 3-year FGN savings bonds.
September rates were 11.041% per annum for 2-year and 12.041% per annum for 3-year FGN savings bonds.
Units of sale –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.
- Read: List of Dividends announced in 2023, qualification and payment dates
- List of Dividends announced in 2022, qualification and payment dates
- List of Dividends announced in 2021, qualification and payment dates
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The interests are payable quarterly, with a bullet repayment of the principal on maturity date.
- Qualifies as securities in which trustees can invest under the Trustee Investment Act.
- 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 amongst other investors.
- Listed on the Nigerian Stock Exchange.
- All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks.
Interested investors should contact offices of any of the following Primary Dealer Market Makers (PDMMs): Access Bank Plc, First Bank of Nigeria Ltd, Standard Chartered Bank Nigeria Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, United Bank for Africa Plc, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, Zenith Bank Plc, Ecobank Nigeria Ltd, Guaranty Trust Bank Plc, FBNQuest Merchant Bank Ltd, Stanbic IBTC Bank Plc.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.