Debt Management Office (DMO) on Monday announced an offer for subscription for two years and three years federal government savings bonds.

The unit of sale, the nation’s debt management office said, is N1,000 per unit.

DMO said in a circular posted on its website Monday that the two years bond with Feb. 10, 2023 as due date would attract an interest rate of 4.214 per cent per annum.

On the other hand, the three-year bond, with Feb.10, 2024 as due date, will attract an interest rate of 5.214 per cent per annum.

The bond is subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter. It is also subject to a maximum subscription of N50,000,000.

The interest payment is payable quarterly, the circular said.

DMO said the offer qualifies as securities in which trustees can invest under the Trustee Investment Act, and as government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, amongst other investors. It is also listed on the Nigerian Stock Exchange and qualifies as a liquid asset for liquidity ratio calculation for banks.

The bonds are backed by the “full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,” DMO said, adding that interested investors should contact the stockbroking firms appointed as distribution agents.

PT