The Federal Government of Nigeria Savings Bond (FGNSB) The Federal Government of Nigeria Savings Bond (FGNSB) is an investment product issued by the Federal Government of Nigeria (FGN) through the Debt Management Office (DMO) effective March 13 2017. The bond is an addition to the FGN securities market and is a retail savings product accessible to all income groups. The purpose of the bond is to encourage a national savings culture and create an avenue for investors to benefit from the favourable returns available in the capital market. The FGNSB is backed by the full faith of the Federal Government of Nigeria and is thus deemed to hold no default risk.

The FGNSB is expected to be issued monthly in tenors of 2 and 3 years via an offer for subscription. The subscription period would be opened for five working days, within which investors can submit their subscriptions through authorized distribution agents of which MORGAN CAPITAL GROUP is one of the few approved agents.

The next issue of the FGNSB has been scheduled by the DMO to take place from May 8-May 12, 2017.

Additional information on the FGNSB
Subscription Amount: Minimum subscription of N5,000 with additional subscriptions in multiples of N1,000, subject to a maximum of N50,000,000
Security: The FGNSB is backed by the full faith of the FGN and is thus deemed to hold no default risk.
Subscription Mode: Investors are to subscribe through Dealing Member Firms of the Nigerian Stock Exchange (NSE) who have been duly accredited by the DMO to act as Distribution Agents (Our Firm, Morgan Capital Group Ltd is listed as one of the authorized distribution agents for the FGNSB)
Coupon Payment: Payable every quarter with principal repayment at maturity

Benefits of Investing in the FGNSB
The FGNSB offers steady returns on a quarterly basis as against the bi-monthly coupon payment of the regular FGN bonds, thus the FGNSB ensures a quicker return on investment (ROI)
Low default risk as the FGNSB is backed by the full faith of the Federal Government
Low investing capital requirement (minimum of N5,000)
The investment can be used as collateral for loans since it is backed by the Federal Government of Nigeria
The bonds will be listed on the NSE allowing for secondary market dealings
Interest income are tax exempt
© 2013 MorganCapital Securities (Nigeria) Limited. All rights reserved. AUTHORIZED, LICENSED and REGULATED by the Nigerian Securities & Exchange Commission as Issuing House/Financial Advisers & Brokers/Dealers. Dealing Member of The Nigerian Stock Exchange; also accredited as Designated Adviser by the NSE. Not all products or services offered by MorganCapital are available in the United States. Privacy Policy | Terms of Use

Connect with us: