N324.4m allotted to 408 savings bond subscribers in August – DMO

The Debt Management Office (DMO) says N324.4 million was allotted to 408 subscribers during its sale of savings bond in August.

The results of the sales obtained from the DMO website on Friday in Abuja, showed that N81.03 million was allotted for Aug. 2021 at 10.301 per cent.

It also indicated that N243.3 million was allotted at 11.301 per cent for the Aug. 2022 papers.

It was reported 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.