The Federal Government said it made N196.3 million from sales of savings bond in January. This is according to the Debt Management Office (DMO).
The results of the sales published on the DMO website on Monday, showed that N73.05 million was allotted at 12.09 per cent with 121 successful subscriptions to mature in Jan. 2020. It stated that N123.25 million was allotted at 13.09 per cent with 178 successful subscriptions to mature in Jan. 2021. The savings bond issuance is expected to help finance the nation’s budget deficit.
The bond issuance is part of the Federal Government’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 Federal Government, 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 and benefit from the favourable returns available in the capital market.