Nigeria has opened subscriptions for two new federal savings bonds even as government borrowing has exceeded this year’s target by more than ₦4.55 trillion (US$3.14 b), the Debt Management Office (DMO) said on Monday.
The agency announced that the two-year bond, maturing on December 10, 2027, will yield 13.538 percent annually, while a three-year paper due December 10, 2028, carries a coupon of 14.538 percent. The instruments, offered at ₦1,000 per unit, are aimed at retail investors and come with guaranteed quarterly interest payments.
Subscriptions opened on Monday and will close on December 5, with settlement set for December 10, the DMO said. Minimum subscription is ₦5,000 (US$3.45), rising in multiples of ₦1,000 (US$0.69), up to a ₦50 million (US$34.544) cap.
The debt office said the bonds are backed by the federal government’s full faith and credit and qualify as approved securities for trustees, pension funds and tax-exempt investments under the Company Income Tax Act and the Personal Income Tax Act. They are also listed on the Nigerian Exchange and count towards banks’ liquidity ratios.
The offer comes as federal borrowing continues to surge. Nigeria had taken ₦17.36 trillion (US$11 B) in domestic and external loans by October, overshooting the period’s target by 55.6 percent, according to data from the DMO and the central bank.
