“Interest payment will be made quarterly, while total sum invested (bullet repayment) will be made on maturity date,’’ the DMO stated. It added that the FGN bonds qualify as securities in which trustees could invest under the Trustee Investment Act. They also qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act; for Tax Exemption and for Pension Funds, among others,’’ it stated.
The savings bonds are listed on The Nigerian Stock Exchange and qualify as liquid asset for liquidity ratio calculation in banks. “FGN bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria,’’ it also stated. The DMO urged interested investors to contact stock broking firms appointed as distributors or visit its website: www.dmo.gov.ng for the list of distributors. NAN