Subscription for the Federal Government of Nigeria (FGN) Savings Bond offer for this month of June has since opened.
The Savings Bond, which guarantees quarterly coupon payments, re-opened on Monday, June 7, 2021, and remains open till Friday, June 11, 2021.
The 2-year FGN Savings Bond due June 16, 2023, is offered at a coupon of 8.889percent; while the 3-year FGN Savings Bond due June 16, 2024, is offered at a coupon of 9.889percent.
FGN savings bond is a bond issued by the Debt Management Office (DMO) on behalf of the Federal Government of Nigeria. The bond is tailored and targeted at retail investors with guaranteed quarterly interest payment and repayment of the principal at maturity.
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FGN savings bond is a good way to save for the future. The bond is safe and backed by the full faith and credit of the Federal Government of Nigeria. Government bonds hardly default and are considered “risk-free”, so holders are certain that they will get their money back in full at maturity. Also, the FGN Saving Bond is acceptable as collateral for a loan from a bank.
The purpose of the FGN Savings Bonds is to deepen the national savings culture; provide an opportunity to all citizens, irrespective of income level, to contribute to National Development; to enable all citizens participate in and benefit from the favourable returns available in the Capital Market; and to diversify funding sources for the Government.
