The Federal Government says it allotted N656.5 million to 288 subscribers at its February savings bond auction on Wednesday.
The results of the sales was obtained from the website of the Debt Management Office, DMO, in Abuja.
It showed that N295.02 million was allotted for February 2022 at 5.91 per cent to 124 subscribers.
The DMO added that N361.5 million was allotted at a coupon rate of 6.91 per cent to 164 subscribers for February 2023.
News Agency of Nigeria reports that savings bond issuance is expected to help finance the nation’s budget deficit.
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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.