The Federal Government, through the Debt Management Office (DMO), has opened offers for subscription to two Federal Government of Nigeria (FGN) savings bonds for February 2025 at interest rates of 17.799% and 18.799%, respectively.
The DMO, in a statement on Monday in Abuja, said the first offer is a two-year FGN savings bond due on February 12, 2027, at an interest rate of 17.799% per annum.
The second offer is a three-year FGN savings bond due on February 12, 2028, at an interest rate of 18.799% per annum.
The opening date for the offer is February 3, 2025; the closing date is February 7, 2025; the settlement date is February 12, 2025, while coupon settlement dates are May 12, August 12, November 12, and February 12.
“They are offered at 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 million.
“Interest is payable quarterly, while bullet repayment (principal sum) is on the maturity date,” the DMO 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 in which trustees can invest under the Trustee Investment Act,” it noted, adding that they also qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds, among other investors.
The Debt Management Office also added that they are listed on the Nigerian Exchange Limited and qualify as liquid assets for liquidity ratio calculations for banks.
On Monday, January 27, 2025, the DMO raised the sum of N669.94 billion from the January 2025 Federal Government of Nigeria (FGN) bond auction. The amount is higher than the N450 billion original target by N219.94 billion.
Last year, the Federal Government borrowed an estimated N5.84 trillion from the FGN bond market amid a move to bridge its 2024 budget deficit.
However, the figures represent a 0.17% decline when compared to the N5.85 trillion borrowed in 2023 through the Debt Management Office.
Total subscription to FGN bonds was N7.09 trillion in 2024, despite a total offer of N5.72 trillion.
This year, the country is hoping to borrow more to finance its budget deficit of N13.08 trillion in 2025.
