DMO opens September bonds offer with 18.2% interest

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The Federal Government of Nigeria, through the Debt Management Office (DMO), has launched its September 2024 Federal Government of Nigeria (FGN) savings bonds, featuring highly competitive interest rates.

Investors can choose between a two-year bond at 17.202% or a three-year bond at 18.202%, with the subscription period running from September 2nd to September 6th, 2024. Priced at N1,000 per unit, with a minimum investment of N5,000, these bonds offer quarterly interest payments, making them a secure and appealing investment option.

The sharp increase in interest rates reflects the Central Bank of Nigeria’s (CBN) efforts to curb inflation and stabilize the foreign exchange market, leading to an 800 basis points rise in interest rates across four Monetary Policy Committee (MPC) meetings in 2024.

This policy has significantly boosted the attractiveness of FGN savings bonds, with interest rates surging by over 6 percentage points compared to September 2023.

The strong demand for government bonds was evident in the August 2024 FGN bond auction, where the Federal Government raised N374.751 billion, showcasing investor confidence in Nigeria’s long-term securities.

These bonds play a vital role in funding national projects and offer Nigerians a secure opportunity to earn high returns while supporting the country’s economic development.

The Sun

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