FG’s savings bond allotment drops to N607.3m in June

The Federal Government allotted N607.3 million in its June 2019 and 2020 savings bond sales, a figure that is lower than the N790.85 million it allotted in May, the Debt Management Office (DMO) said.
The allotment results were obtained from its website on Wednesday in Abuja. It said that N271.56 million was allotted at 13.18 per cent with 425 successful subscriptions to mature in June 2019.
DMO also said that N335.7 million was allotted at 14.18 per cent with 496 successful subscriptions maturing in June 2020. This figure indicates a drop in allotments and subscriptions over the past months.
The savings bond introduced in March is targeted at the lower income earners to encourage savings and also earn more income (interest) compared to their savings accounts with banks.
In its maiden sale conducted in March, the Federal Government allotted N2.1 billion to 2,575 subscribers while it allotted N1.2 billion to 1,798 subscribers in April. In May, the subscription dropped to N790.85 million for 1,233 subscribers.
The savings bond designed to help finance the nation’s budget deficit is also backed by its ‘full faith and credit’.
Interests are to be paid at regular periods with principal repaid at maturity. They have a tenure of between two and three years and a minimum size of investment of N5,000 and maximum of N50 million. It 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 in and benefit from the favourable returns available in the capital market.
The next offer will open on July 3 and close on July 7, the DMO said.