The Federal Government of Nigeria (FGN) allotted N256.23 million in its November, 2019 and 2020 savings bond sales, according to the Debt Management Office (DMO).
The allotment results, derived from its website on Friday showed that N72.42 million was allotted at 12.09 per cent with 177 successful subscriptions to mature in November 2019.
It stated that N183.81 million was allotted at 13.09 per cent with 244 successful subscriptions to mature in November 2020.
The savings bond issuance is expected to help finance the nation’s budget deficit.
The bond issuance is part of the FG’s programme targeted at the lower income earners to encourage savings and also earn more income (interest), compared to their savings accounts with banks.
The bonds are debt securities (liabilities) of the FG, backed by its ‘full faith and credit’.
Interests are to be paid at regular periods and principal repaid at maturity.
The bonds have a tenure of between two to three years and a minimum size of investment of N5, 000 and 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 to participate in and benefit from the favourable returns available in the capital market.