FG urges Nigerians to invest in savings bond

The Federal Government on Thursday called on Nigerians to invest in its Savings Bond through the Debt Management Office (DMO).
According to the April 2017 bond offer derived from DMO website, the retail savings product is accessible to all income groups.
The offer would open on April 3 and close on April 7.
The product which would be issued monthly in tenors of two and three years, would be offered to investors through offer for subscription at an interest rate to be announced by DMO.

It also said that no fees would be charged for subscriptions, adding that the minimum subscription amount was N5,000 with additions in multiples of N1,000 subject to a maximum of N50 million.

The bond is aimed at deepening national savings culture, diversifying funding sources for the government and providing opportunity to all citizens irrespective of income level to contribute to national development.

It will also enable all citizens participate in and benefit from the favourable returns available in the capital market.

DMO said that interest income would be 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.

“It is good for savings toward retirement, marriage, school fees and house projects.

“The bond is backed by the full faith and credit of the Federal Government of Nigeria.’’

It said that investors are to subscribe through stock broking firms trading on the floor of the Nigerian Stock Exchange (NSE) and accredited by the DMO to act as distribution agents.