The Federal Government of Nigeria, through the Debt Management Office (DMO), has officially launched the subscription window for the Federal Government Savings Bonds (FGN Savings Bonds) for December 2024.
This initiative, aimed at fostering national investment, invites both individual and institutional investors to partake in the opportunity over a four-day period, from December 2 to December 6, 2024.
This month’s bond offering includes two options: a two-year savings bond maturing on December 11, 2026, with an interest rate of 17.483%, and a three-year bond maturing on December 11, 2027, offering 18.483%.
Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and additional investments in multiples of N1,000, allowing investors to subscribe for up to N50 million.
The settlement date for successful subscriptions is set for December 11, 2024, after which investors can expect their first quarterly coupon payment on March 11, 2025, followed by subsequent payments on June 11, September 11, and December 11 each year.
This offering gives Nigerians the opportunity to invest in government-backed bonds, contributing to personal and national financial stability.
The 18.48% interest rate offered on the current Federal Government of Nigeria (FGN) savings bonds represents a notable increase compared to rates from the previous year.
In December 2023, the interest rate for a similar offering was 13.28%, showing a sharp rise of 5.20 percentage points over the past year.
This increase is likely driven by the Central Bank of Nigeria’s (CBN) series of interest rate hikes since February 2024.
This robust participation highlights the growing preference for secure, government-backed investment options as investors navigate the evolving economic landscape.