The Debt Management Office (DMO), on behalf of the Federal Government, has announced an offer to investors to subscribe to the February 2022 Federal Government Savings Bond.
This information is contained in a circular issued by the DMO and is available on its website. It is worth noting that there are 2-year and 3-year savings bonds with interest rates of 7.22 percent and 8.22 percent, respectively.
The 2-year FGN savings bond will be due on February 16, 2024, at 7.22 percent per annum, and the 3-year FGN savings bond will be due on February 16, 2025, at 8.22 percent per annum.
The first day of operation will be February 7th, 2022.
The deadline is February 11th, 2022.
Date of Settlement – February 16th, 2022
Payment dates for coupons are May 16, August 16, November 16, and February 16.
Unit of sale: N1,000 per unit, with a minimum subscription of N5,000 and subsequent subscriptions in multiples of N1,000, with a maximum subscription of N50,000,000.
A month-to-month comparison reveals that the rates for the two tranches are lower, with 7.542 percent and 8.542 percent offered for the 2-year FGN savings bond due January 19, 2024, and 3-year FGN savings bond due January 19, 2025, respectively.
According to the disclosure, the security is backed by the Federal Government of Nigeria’s full faith and credit and is charged against Nigeria’s general assets.
Under the Trustee Investment Act, the FGN Savings Bond qualifies as a security in which trustees can invest.
It also qualifies as Government securities under the Company Income Tax Act (“CITA”) and the Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds and other investors.
