The Federal Government of Nigeria has announced a new savings bond offering through the Debt Management Office (DMO), providing two-year and three-year bonds at annual interest rates of 11.74% and 12.74%, respectively. According to a circular published on the DMO’s website, the two-year bond will mature in May 2021, while the three-year bond will mature in May 2022.
Although the exact amount offered was not disclosed, the maximum subscription limit is set at ₦50 million, with a minimum subscription of ₦5,000 and increments of ₦1,000 per unit.
The bonds, backed by the full faith and credit of the Federal Government, will provide quarterly coupon payments to bondholders. This savings bond issuance is intended to help finance the nation’s budget deficit, while also serving as a tool for encouraging savings among lower-income earners. Investors stand to benefit from higher interest rates compared to those offered by regular savings accounts in banks.
The bond offer is scheduled to close on Friday.
