The Debt Management Office says it is now offering the general public an investment option in bonds as low as N10,000, which will be due in April 2023, according to an offer circular obtained from the DMO website.
The government is offering N1,000 per unit, subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter for re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus accrued interest from the original issue date.
According to the offer notice, it 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 others.
The debt agency says the offer for subscription by Auction is authorized to receive applications for N40 billion savings bonds at 12.75 per cent per annum for a five-year re-opening bond.
The savings bond issuance is expected to help finance the nation’s budget deficit, and is part of the Federal Government’s programme targeted at the lower income earners to encourage savings and also earn more income (interest), compared to their savings accounts with banks.
Other open investment categories are a N40 billion 13.53 per cent FGN March 2025 (7-Year Re-opening), N20 billion – 13.98 per cent FGN February 2028 (10-Year Re-opening), for a March 27 auction date.