DMO announces date to begin auction of N300 billion FGN bonds

• The national authorities is offering 2 caller bonds to the Nigerian investing nationalist with charismatic yields
• The Debt Management Office has announced that this is simply a risk-free investment, and the returns are besides tax-free
• The commencement day for the auction of the bonds has been announced, arsenic good arsenic the adjacent date

Legit.ng journalist Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.

The Debt Management Office (DMO) has announced that auctions of the federal government bonds valued astatine N300 cardinal volition statesman soon.

It volition beryllium unfastened for subscription astatine the complaint of N1,000 per unit, and the auction of the bonds volition commence connected March 24.

Details of the enslaved auction person been provided successful the DMO connection released connected Tuesday, March 18.

The N300 cardinal bonds volition auction astatine N1,000 per unit, astatine a monolithic 19.89% output rate. Photo credit: State house
Source: UGC

• Sales volition commencement connected March 24, with a colony day of March 26
• It volition beryllium auctioned astatine a portion terms of N1,000 targeting retail investors
• The FGN Bonds acquisition volition beryllium taxable to a minimum subscription of N50,001,000 (fifty million, 1 1000 naira) and successful multiples of N1,000 thereafter.

Repayment plan

The CABLE reports that investors successful the FGN Bonds subscription can expect guaranteed quarterly involvement payments, portion the main volition beryllium repaid astatine maturity.

The involvement tin besides beryllium paid semi-annually, with the redemption expected to beryllium successful the slug outgo connected the maturity date.

The connection read;

“For Re-openings of antecedently issued bonds, (where the coupon is already set), palmy bidders volition wage a terms corresponding to the yield-to-maturity bid that clears the measurement being auctioned, positive immoderate accrued involvement connected the instrument,”

There are 2 offers successful the FGN Bonds auction. The archetypal is simply a five-year savings enslaved astatine 19.30% returns per annum, owed to mature successful April 2029.

The 2nd connection from the DMO is simply a nine-year savings enslaved astatine 19.89% returns per annum, and owed to mature successful May 2033.

This is akin to the two FGN bonds issued successful December 2024 astatine 17.48% and 18.48% output rates.

Why Nigerians should subscribe to the FGN bonds

The DMO connection urged Nigerians to instrumentality vantage of this concern accidental arsenic they are backed by the afloat religion and recognition of the national authorities of Nigeria, and charged upon its wide assets.

These bonds suffice arsenic authorities securities, and nether the Company Income Tax Act and Personal Income Tax Act, volition bask taxation exemptions.

They besides suffice arsenic securities for trustees to put in, nether the Trustees Investment Act, and are listed connected the Nigerian Exchange Limited ( NGX), making them besides a liquid plus for liquidity ratio calculation for banks.

The bonds are successful 2 categories, the archetypal with a five-year maturity, and the 2nd with nine-year maturity. Photo credit: CBN/UCG
Source: Getty Images

The DMO statement astir bonds says;

"When you bargain FGN Bonds, you are lending to the FGN for a specified play of time. The FGN Bonds are considered arsenic the safest of each investments successful home indebtedness marketplace due to the fact that it is backed by the ‘full religion and credit’ of the Federal Government, and arsenic such, it is classified arsenic a hazard escaped indebtedness instrument. "They person nary default risk, meaning that it is perfectly definite your involvement and main volition beryllium paid arsenic and erstwhile due. The involvement income earned from the securities are taxation exempt."

DMO opens 2 savings bonds

In related news, the Debt Management Office (DMO) has opened 2 Federal Government Savings bonds for subscription for March 2025.

The bonds were offered astatine a quarterly involvement complaint of 16.64% and 17.64 and would mature successful 2027 and 2028, respectively.

The subscription day opened connected March 3, 2025, and closed connected March 7, 2025, and offered astatine the complaint of N1,000 per unit.

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Source: Legit.ng