Nigerian Govt offers savings bonds at 10.7%, 11.7 % in March

DMO-Ms

Ms Patience Oniha, the Director-General, Debt Management Office (DMO).

Ms Patience Oniha, the Director-General, Debt Management Office (DMO).

The Federal Government on Monday offered for subscription a two-year savings bond at 10.74 per cent and three-year savings bond at 11.74 per cent.

According to the Debt Management Office (DMO) website, the two-year savings bonds will be due in March 2020.

It said the three-year savings bond would be due in March 2021.

The Debt office, however, did not state how much was offered, but the maximum subscription was N50 million at N1,000 per unit, subject to minimum subscription of N5,000 in multiples of N1,000.

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According to DMO, the bond is backed by the full faith and credit of the Federal Government, with quarterly coupon payments to bondholders.

The savings bond issuance is expected to help finance the nation’s budget deficit.

It is also part of the Federal Government’s programme targeted at the low-income earners to encourage savings and earn more interest on savings, compared to what was accrued on their bank savings.

The offer closes on Friday.