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Nigerian govt commences auction of savings bond
The Federal Government has kickstarted the auction of savings for the month of February, 2019.
According to the Debt Management Office, DMO, the auction commenced on February 4th and it’s expected to end on the 8th.
A savings bond is targeted at low-income earners to encourage them to save and earn more income (interest) compared to their savings account with banks. They are also tax-free with competitive fixed interest rates to be paid every quarter, and are tradeable on the Nigerian Stock Exchange.
The DMO also stated that the two-year FGN Savings Bond was offered at 12.05 per cent per annum and would be due on February 13, 2021, while the three-year FGN Savings Bond was offered at 13.05 per cent per annum and would be due on February 13, 2022.
Read also: Udo Udoma contradicts IMF, predicts Nigeria’s economy will grow by 3.1%
The bonds were 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 N50m.
“The bond qualifies as securities in which trustees can invest under the Trustee Investment Act. It also qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption and pension funds, among other investors.
“Interested investors are advised to contact the stockbroking firms appointed as distribution agents by the DMO”, the DMO said.
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