DMO opens July FGN Savings Bond with up to 15.716% annual return

This rate represents the highest interest offered since the beginning of the year. The DMO, acting on behalf of the Federal Government of Nigeria, announced that the subscription window opened on July 6 and will close on July 10, with settlement scheduled for July 15. This initiative aims to provide retail investors with access to low-risk, government-backed securities, promote financial inclusion, and encourage savings.

The offer includes two bond instruments: a two-year FGN Savings Bond due July 15, 2028, with a 14.716 percent annual interest, and a three-year bond due July 15, 2029, offering 15.716 percent annually. These rates show a significant increase of over 94 basis points compared to the June Savings Bonds. The bonds are priced at 1,000 naira per unit, with a minimum subscription of 5,000 naira and a maximum of 50,000,000 naira.

Interest payments are made quarterly, and the principal is repaid in full at maturity. The FGN Savings Bond offers several benefits, including tax exemptions for pension funds, and is backed by the full faith and credit of the Federal Government of Nigeria. They are also listed on the Nigerian Exchange Limited, allowing for secondary market trading, and qualify as liquid assets for banks and eligible securities for trustees.