FG makes N343.05m from savings bond in July, says DMO

The Federal Government said it made N343.05 million from sales of savings bond in July.
The results of the sales published on the website of the Debt Management Office (DMO) on Wednesday in Abuja, showed that N79.98 million was allotted for July 2020 at 10.48 per cent.
It also indicated that N263.06 million was allotted at 11.48 per cent for July 2021 papers.
According to the result, the sales were made after 288 successful subscriptions.
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.