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N533m subscribed in May savings bond – FG

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ABOUT N532.65 million was allotted to 515 subscribers through the sale of savings bond in May by the federal government.

The figure was obtained in a release published by Debt Management Office (DMO) Abuja yesterday, indicating that N120.69 million was allotted for May 2021 at 11.74 per cent.

Explaining that bond issuance is part of federal government’s programme targeted at low income earners to encourage savings and also earn more income through interest, compared to their savings accounts with banks, the release further shows that N411.95 million was allotted at 12.74 per cent for the May 2022 papers, adding that savings bond issuance is mop up measure expected to help finance national budget deficit.

It will be recalled that apart from enabling subscribers or allottees to participate and benefit from favourable returns available in the capital market, bonds are debt securities or liabilities of federal government, backed by its ‘full faith and credit’ through which interests are to be paid at regular periods and principal repaid at its maturity between two to three years, with a minimum N5, 000 and maximum of N50 million investment.

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