FG allots N532.65 million to 515 subscribers in May savings bond

The federal government says it allotted N532.65 million to 515 subscribers through the sale of savings bond in May.

The results of the sales obtained from the website of the Debt Management Office (DMO) on Wednesday in Abuja, showed that N120.69 million was allotted for May 2021 at 11.74 per cent.

It also indicated that N411.95 million was allotted at 12.74 per cent for the May 2022 papers.

The News Agency of Nigeria (NAN) reports that 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.