The Debt Management Office (DMO), says N295.9 million was allotted to 409 subscribers during its savings bond auction in September.
The results of the sales obtained from the DMO website on Thursday in Abuja, showed that N91.11 million was allotted for Sept. 2021 at 11.15 percent. It also indicated that N204.8 million was allotted at 12.15 percent for the Sept. 2022 papers.
Agency reports revealed 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 years 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.
