The Nigerian government has opened two new savings bonds to investors, giving individuals an opportunity to invest in federal government securities with as little as N5,000. The Debt Management Office (DMO) said the bonds are available at N1,000 per unit and come with annual interest rates of 14.12% and 15.12%.
According to the DMO, the first offer is a two-year savings bond carrying an interest rate of 14.12% per annum and will mature on September 16, 2028. The second is a three-year bond offering a higher interest rate of 15.12% per annum, with maturity scheduled for September 16, 2029.
The subscription opened on September 7 and will close on September 11, while settlement is scheduled for September 16. Investors will receive interest payments quarterly on December 16, March 16, June 16 and September 16. The minimum investment is N5,000, while additional subscriptions must be made in multiples of N1,000, up to a maximum of N50 million.
The DMO said the bonds are backed by the full faith and credit of the Federal Government of Nigeria. They are also listed on the Nigerian Exchange and qualify as government securities under relevant tax laws, while pension funds, trustees and banks can invest in them subject to applicable rules.
The Nigeria savings bonds are designed primarily for retail investors seeking a relatively straightforward way to earn fixed returns while investing in government securities. With the low entry point of N5,000 and quarterly interest payments, the latest offer provides individuals with another avenue to put their money to work while supporting government financing and national development.
