The Debt Management Office (DMO) has announced the issuance of bonds worth N450 billion in its upcoming auction scheduled for May 13, 2024.
The offering forms part of the government’s monthly bond auction, aimed at supporting national financial requirements while providing attractive investment opportunities for institutional and retail investors.
The auction will take place on May 13, 2024, with a settlement date of May 15, 2024. Each unit will be available at N1,000, with a minimum subscription requirement of N50,001,000 and subsequent multiples of N1,000. Interest payments for all three bonds will be made semi-annually, providing investors with regular income throughout the investment period.
All bonds will mature with a bullet repayment on their respective dates, ensuring full principal repayment. Furthermore, these bonds are backed by the full faith and credit of the Federal Government of Nigeria, which guarantees their security and charges them against Nigeria’s general assets.
In addition to being attractive investment opportunities, these bonds offer several benefits to investors. They qualify as securities under the Trustee Investment Act and are recognized as government securities under both the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA), making them eligible for tax exemptions for pension funds and other qualified investors. Moreover, all FGN bonds are classified as liquid assets for bank liquidity ratio calculations and are listed on the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.