FEDERAL GOVERNMENT OF NIGERIA SAVINGS BOND

This is to bring to the notice of the public that the Debt Management Office (DMO), on behalf of the Federal Government of Nigeria (FGN), wishes to introduce a retail savings product that will be accessible to all income groups – the FGN Savings Bond.  Click here to download Application Form

Commencement Date

Offer will be opened on Monday, March 13, 2017 and will run for 5 days.

Subsequently, it will be issued on the first week of every month

Purpose

  • To deepen the national savings culture.
  • To provide opportunity to all citizens irrespective of income level to contribute to National Development.
  • To diversify funding sources for the Government.

Benefits

  • Interest income is paid quarterly directly into bond holder’s account.
  • The Bond is acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.
  • Good for savings towards retirement, marriage, school fees, house projects, etc.
  • Safety: backed by the full and credit of the Federal Government of Nigeria.

Features

  • The product will be issued monthly in tenors of 2 and 3 years, with quarterly payment of interest to investors.
  • The product will be offered to the investing public through Offer of Subscription at an interest rate to be announced by the DMO.
  • The Offer for Subscription will be open for 5 days from the date of announcement.
  • Minimum subscription amount is ₦5,000.00 with additions in multiples of ₦1,000.00, subject to a maximum of ₦50,000,000.00.
  • The Bond is backed by the full faith and credit of the Federal Government of Nigeria.

Subscription Mode

Investors are to subscribe through stockbroking firms trading on the floor of The Nigerian Stock Exchange (NSE) and accredited by the DMO to act as Distribution Agents. (Please visit www.dmo.gov.ng for the list of accredited Stockbroking Firms).

New Market Structure

In view of this addition to the FGN securities market, the new market structure for the FGN securities market will be as follows:

  • FGN Savings Bonds- minimum subscription ₦5,000.00, maximum ₦50,000,000.00
  • Nigerian Treasury Bills- minimum subscription ₦50,001,000.00.
  • FGN Bonds- minimum subscription ₦50,001,000.00.

Please note that the new market structure takes effect from March 6, 2017.

Attractions

  • 13.01% Coupon/Interest P.a
  • Guaranteed Fixed Income
  • Quarterly Interest Payment
  • Can be used as a collateral for Loan
  • Can be traded at the secondary market on The Nigerian Stock Exchange Exchange

you can also subscribe by paying into our FGNSB Account

Bank Name: Stanbic IBTC

Account Name: Financial Trust Company Nigeria Limited

Account No: 0020075445