Saturday, April 10, 2021
Array

Savings bonds: Nigerian govt auctions N656,577m to 288 subscribers in February — DMO

Headline

Rayyan Alhassan
Rayyan Alhassanhttps://dailynigerian.com/author/rayyan/
Rayyan Alhassan is a 30-year-old graduate of Journalism and Mass Communication at Sikkim Manipal University, Ghana. He is the acting Managing Editor at the Daily Nigerian newspaper, a position he has held for the past 3 years. He can be reached via [email protected], or www.facebook.com/RayyanAlhassan, or @Rayyan88 on Twitter.
tiamin rice

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.

READ  BREAKING: Nigeria’s debt profile hits ₦32.2trn

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.

READ  DMO raises N66.9bn at July bond auction

News Agency of Nigeria reports that savings bond issuance is expected to help finance the nation’s budget deficit.

READ ALSO: DMO raises N66.9bn at July bond auction

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.”

READ  Nigeria to issue Islamic financial bond, ‘sukuk’

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.

READ  N145bn worth of bonds to be auctioned July 24 - DMO

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

READ  Nigeria’s budget deficit rises to N4.5trn – DMO

NAN

Related News

Latest News

cosgrove