According to the DMO, the offer includes two bond options: a 2-Year FGN Savings Bond at 14.401% per annum, maturing on August 13, 2027, and a 3-Year FGN Savings Bond at 15.401% per annum, maturing on August 13, 2028.

Subscriptions open on Monday, August 4, 2025, and close on August 8, 2025. The settlement date is August 13, 2025.

Each bond unit is priced at N1,000, with a minimum subscription of N5,000 and in multiples of N1,000 thereafter, up to a maximum of N50 million.

Interest payments will be made quarterly, and full repayment will be effected on the respective maturity dates.

The DMO has advised interested investors to contact any of its authorised stockbroking firms, who serve as distribution agents, to complete their subscription.

The savings bond is open to all investors, including those with limited capital. With a low entry point of just N5,000, the bond aims to encourage wider participation among Nigerians.

It also offers a secure investment option, being backed by the full faith and credit of the Federal Government of Nigeria.

The post FG’s August Savings Bond Opens for Subscription appeared first on Tech | Business | Economy.

As revealed in a circular released on Thursday, the auction is scheduled for May 26, 2025, with the settlement date slated for May 28, 2025.

The offering consists of two categories of reopened bonds: a N100 billion reopening of the 19.30% Federal Government of Nigeria (FGN) bond set to mature in April 2029, with a five-year tenor.

The second is a N200 billion reopening of the 19.89% FGN bond maturing in May 2033, offering a nine-year tenor.

The bonds are priced at the rate of N1,000 per unit, subject to a minimum subscription of N50,001,000. Subsequent purchases must be made in multiples of N1,000. Interest will be paid semi-annually.

As reopened issues, the coupon rates, 19.30% and 19.89%, have already been set. Successful bidders will pay a price based on the yield-to-maturity that clears the auction, including any accrued interest.

The bonds are backed by the full faith and credit of the Federal Government of Nigeria, providing security of funds to investors.

The DMO also confirmed that the bonds are listed on the Nigerian Exchange Limited and FMDQ OTC Securities Exchange, encouraging interested investors to contact authorised Primary Dealer Market Makers (PDMMs) for participation.

The post FG to Auction N300 Billion Bonds May 26 appeared first on Tech | Business | Economy.

Debt Management Office (DMO) in a circular issued on Wednesday stated that the offerings consisted of N1.25tn with a maturity date of February 2031 and N1.25tn with a 10-year tenor.

FGN savings bonds are part of the domestic borrowing plan of the Federal Government.

Last year, the Federal Government raised about N7.06tn from the fixed income market.

This year, the Federal Government has projected its new borrowings to hit N7.83tn.

President Bola Tinubu had sought approval from the National Assembly for about $8.69bn and €100m as part of the external borrowing plan for 2022 to 2024.

The latest FG bonds have a face value N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000.

Interest payments on FGN bonds are usually semi-annually.

In January, the FG had offered a two-year FGN Savings bond due January 17, 2026 at 11.033 per cent per annum and another three-year FGN Savings Bond due January 17, 2027 at 12.033 per cent per annum.

It allotted N603.42bn for the two-year tenor bond and N1.394tn for the three-year bond.(Punch)

The post FG to Raise N2.5tn via Bonds – DMO appeared first on Tech | Business | Economy.

This aptly projects the current state of Nigeria.

No one needs a soothsayer to understand that there is a global economic challenge; however been a Nigerian at the crucial times takes more than normal thinking to survive.

One has to look for all avenues to create multiple incomes. That been the case, exploring the opportunities provided by financial instrument that may not be common although with proven, tested results. One of such is the BOND.

Two major ways That You Can Make Money from Bonds

1. The individual investor can buy bonds directly, with the aim of holding them until they mature in order to profit from the interest they earn.
2. They may also buy into a bond mutual fund or a bond exchange-traded fund (ETF).

For instance, Professional bond traders dominate a secondary market for bonds, where existing issues are bought and sold at a discount to their face value.

The amount of the discount depends partially on how many payments are still due before the bond reaches maturity.

But its price also is a bet on the direction of interest rates. If a trader thinks interest rates on new bond issues will be lower, the existing bonds may be worth a little more.

In either case, the owner of the bond receives interest payments, known as the coupon, throughout the life of a bond, at the interest rate that was determined when it was issued.

But what are coupons? A coupon-paying bond pays a pre-determined amount of interest, usually twice a year until the date the bond matures. But a zero-coupon bond is bought at a discount from its face value, and the investor receives the full face value when it matures.

The interest paid on bonds may be pre-set or may be based on prevailing interest rates at the time it matures.

For instance, if you invested $1,000 in a 10-year bond with a coupon rate of 4%, the issuer would send you a coupon (interest) payment of $40 every year. Most bonds pay twice a year, so you would receive two checks for $20 each.

But what is my “Kobo’ advice all about, a glimpse of the current realities of Nigeria’s Economy drives my point home.  A family of four is estimated monthly costs are ₦1,132,503.4 without rent.

For the Single, it is estimated that a person estimated monthly costs are ₦318,606.8 without rent. This may sounds weird right?

Again, Rent in Nigeria is, on average, 67.4% lower than in United States.  I would not want to boarder you as much, but I intend to create urgency for economic expansion of income into to you, so that you will understand the fierce urgency of tapping into creating multiple incomes for yourself and consider harnessing opportunities around of you most especially through the BOND.

With challenges of unemployment, underemployment starring us in the face as a people the average monthly net salary (after tax) ₦98,280.93, while for you to rent an apartment (like 3 bedrooms) outside of the centre ₦694,028.21, ₦200,000.00-1,500,000.00.

Don’t even think of the high brown areas yet.  A single Apartment (1 bedroom) in City Centre 479,350.41 ₦150,000.00-1,200,000.00, whilst 1 bedroom Outside of Centre falls within 313,579.16 ₦ 80,000.00-700,000.00.

For the married or couples, Childcare Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child ₦49,691.67, ₦25,000.00 or ₦100,000.00, But International Primary School, Yearly for 1 Child 849,305.56 ₦300,000.00-3,000,000.00 respectively.

This is alarming and involved a lot of money that traditional means of income cannot gather for.

And because you cannot live without internet connection, no matter how despicable it is right now.  Mobile Phone Monthly Plan with Calls and 10GB+ Data cost 5,192.31 ₦5,000.00-7,500.00 Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) ₦21,344.31, ₦13,000.00-30,000.00

For those like “Jollification”, Bottle of Wine (Mid-Range) ₦3,000.00 ₦1,500.00-7,000.00, although Domestic Beer (0.5 liter bottle) goes for 485.05, ₦300.00-714.29, while Imported Beer (0.33 liter bottle) ₦659.59 ₦450.00-1,000.0. But if you must smoke, Cigarettes 20 Pack (Marlboro) 775.00 ₦500.00-1,000.00, you can see it is not a play matter!

Because, you can live without food, “man shall l not live by bread alone” they say. A Meal, for Inexpensive Restaurant 1,500.00 ₦500.00-3,000.00 and Meal for 2 people, mid-range restaurant, three-course 20,000.00 ₦2,000.00-45,250.00. I can go on and on, to established the fact that extra income, this time around through BOND is timely and should be considered.

It is my conviction that the amalgam of information provided, corresponding challenges highlighted will propel you take a look at BONDS as an alternatives to creating wealth.

The post Simple Ways to Making Money from Bonds appeared first on Tech | Business | Economy.

The auction which took place on January 29, 2024, saw the reopening of the 10-year 16.2884% FGN MAR 2027, the 10-year 14.55% FGN APR 2029, the 10-year 14.70% FGN JUN 2033, and the 15-year 15.45% FGN JUN 2038 bonds.

Furthermore, N90 billion was offered for the 16.2884% FGN MAR 2027 bond. A subscription of N166.997 billion, representing an oversubscription of N76.997 billion was received, with bids ranging between 12.00% and 18.50%.

However, only N86.187 billion was allotted with the marginal rate being 15.00%. N90 billion was offered for the 14.55% FGN APR 2029 bond.

A subscription of N56.839 billion was received, representing an under-subscription of N33.161 billion, with bids ranging between 12.50% and 18.00%.

However, the total allotted amount was N21.939 billion with a marginal rate of 15.50%.

N90 billion was offered for the 14.70% FGN JUN 2033 bond. A subscription of N68.846 billion was recorded, representing an under-subscription of N21.154 billion, with bids ranging between 13.50% and 17.97%. The total allotted amount was N43.346 billion with a marginal rate of 16.00%.

N90 billion was offered for the 15.45% FGN JUN 2038 bond. A subscription of N311.875 billion was received, representing an oversubscription of N221.875 billion with bids ranging from 15.7% and 18.5%. The total allotted amount was N266.725 billion with the marginal rate being 16.50%.

The auction results display continued investors’ appetite for longer-tenured bonds in Nigeria due to higher yield rates, even as Nigeria is yet to turn the corner concerning inflation.

With a drop in 2024’s budget deficit to N9.18 trillion from 2023’s budget deficit of N11.34 trillion, it is expected that there will be a drop in the amount raised through FGN bonds.

For example, the N418.197 billion allotted in FGN bonds in January 2024 is a 36.9% year-on-year decline from the N662.617 billion raised in January 2023

The post FG Raises N418.197 billion in January 2024 Bond Auction   appeared first on Tech | Business | Economy.

The aim of this initiative is to empower investors and stakeholders to make informed investment decisions and encourage companies to prioritize sustainability in their financial reporting.

Notably, Nigeria has become the first African nation to adopt these standards, joining major global financial centers such as New York, London, Frankfurt, Singapore, Santiago, and Montreal.

During the launch event held at the Nigerian Exchange Group house in Lagos, Shuaibu Adamu, the Executive Secretary of FRC, expressed his belief that this milestone signifies Nigeria’s firm dedication to responsible and sustainable business practices.

He emphasized that Nigeria’s adoption of these standards sets a significant example for other countries, solidifying its position as a global leader in sustainability reporting.

Adamu further highlighted the importance of attracting private investment capital, as there is currently a substantial global investor base of over $2 trillion in institutional funds with a focus on environmental, social, and governance (ESG) factors.

To attract this capital, countries and institutions must demonstrate their commitment to climate action and sustainable development.

In this regard, Nigeria, with NGX as a platform, can position itself to compete with other nations. By providing comprehensive, comparable, and transparent information about sustainability and climate-related risks and opportunities, Nigeria can effectively price these factors and encourage the flow of private capital that is crucial for sustainable development

The post Nigeria Launches IFRS Sustainability Disclosure Standards appeared first on Tech | Business | Economy.

The first tenor is a 2-year FGN savings bond with a coupon rate of 9.465% per annum due March 15, 2025.

The second tenor is a 3-year FGN savings bond with a coupon rate of 10.465% per annum due March 15, 2026.

The minimum subscription amount for these tax-free papers is N5,000, with a maximum subscription amount of N50 million.

The settlement date is March 15, 2023, with coupon payment dates of June 15, September 15, December 15, and March 15.

According to DMO, interested investors can buy these bonds from any licensed brokerage firm in the country.

The FGN savings bond is a safe debt instrument backed by the Nigerian government’s full faith and credit, and it can be used as a liquid asset in the calculation of banks’ liquidity ratios.

It’s also a qualified security under the Trustee Investment Act, which makes it an appealing option for trustees.

“This offering presents an opportunity for retail investors to invest in a low-risk, high-yield asset with a low entry barrier, which could potentially enhance their investment portfolio,” DMO said.

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