What is a Bond? A bond is a confirmation from a
borrower that it borrowed money
(cash) from a lender at a given
interest rate and repayable over a
period. Bonds also include how
payment of the principal and interest will be made. They also include the
minimum amount that can be
subscribed by a lender and in what
multiples. Bonds are evidenced by an
instrument typically issued by a
company or country in exchange for cash. What are FGN Bonds? FGN Bond is a bond issued by the
Nigerian government in exchange for
cash at a given interest rates and a
repayment period. It also states how
payments of the principal and interest
will be made. Nigeria has more than one FGN Bond, with each
differentiated by their tenor (duration)
and interest rates.

What is FGN Savings Bond? An FGN Savings Bond is a bond issued by the Debt Management Office on behalf of the Nigerian Government. The bond is tailored and targeted at retail investors and includes a guaranteed interest payment and repayment of the principal. You can check this article for more on FGN Savings Bond. Why is the government issuing a retail bond? The government is issuing savings bonds targeted at ordinary Nigerians of all income groups, giving them the opportunity to earn an income through saving and investing. The bond is also expected to help promote the savings culture of Nigerians. Most Nigerians are thought not to save in banks because of very low-interest rates.

What are the benefits ? The bond earns you an interest that
will be paid quarterly directly into your
bank account.
The bond is safe and is backed by the
full faith and credit of the FG.
Government Bonds hardly default, so you are nearly 100% sure that you
will get your money back in full along
with the interest.
You need not be rich to invest as
anyone with as little as N5,000 can
invest in the bond. FGN Savings Bond is a good way to
save towards your marriage, an
occasion, school, project, retirement
etc.
You can also use the Bond as a
collateral to get a loan from a bank. What are the risk ? FGN Bonds are often said to be risk
free because the Federal
Government hardly defaults on debt
repayments especially if it is a Naira
denominated debt. However, being a
bond there are a few risks, should you decide to sell before maturity. Just
like a stock, you can invest N1 million
in a bond and get only N900k in
principal. We’ll explain this later. You
also face the risk of losing the value

How much can I invest? Retail investors looking to invest in the FGN Savings Bond only need a minimum of N5,000 to invest. Subsequent investment over N5,000 will be in multiples of N1,000. Meaning that you cannot invest N5,500 or N12,700. It’s either N6,000 or N13,000 or N30,000. The maximum amount a single retail investor can invest in the FGN Bond is N50 million.

ihedioramma:
How much can I invest? Retail investors looking to invest in
the FGN Savings Bond only need a
minimum of N5,000 to invest.
Subsequent investment over N5,000
will be in multiples of N1,000.
Meaning that you cannot invest N5,500 or N12,700. It’s either N6,000
or N13,000 or N30,000. The
maximum amount a single retail
investor can invest in the FGN Bond
is N50 million.

Please educate me more, and how or where can buy the retail FGN bond. And what period of time before d bond mature. Thank u.

@Ozome15 You can buy it from any of the
approved registered stockbrokers.
Just ask your stockbroker if they are
authorised to sell. It’s that simple.

This is open to all experts to teach . But for only about NEW FGN SAVINGS BOND .

Today 13th march 2017 is the first day the new FGN savings bond will start .

@ OBAGADAFFI,Timmi and IHelp you are wellcome .

Will it be issued monthly? Yes, the FGN Savings Bond will be issued monthly What if I decide to sell before maturity? You need not hold on to the bond until maturity. If you need cash anytime during the duration of the bond, you can sell your bond in exchange for cash. However, the portion of the interest that you are not entitled to earn because you have sold will not accrue to you any longer. For example, if you buy March 13 and sell August 13 2017 because you cannot wait till March 2019 (after two years) to get your principal, you will only be entitled to the interest earned between March 13 and August 13 2017. However, note that should you wish to sell before maturity, you might pay a transaction fee. Also, because it is a bond, the price you get might be more or higher depending on the market value of the bond.

What is a market value? A bond has certain characteristics similar to a stock. Being an instrument, bond prices can often be higher or lower than their face value. A face value of a Nigerian Bond is typically N1,000. Let’s assume you bought FGN Savings bond at N1 million and at an interest rate of 13% per annum. It means that for every N1,000 of your investment, you will earn N130 (also known as the coupon rate). So, if you decide to hold your N1 million to maturity, you will earn N130k annually. In th

ihedioramma:
@Ozome15 You can buy it from any of the
approved registered stockbrokers.
Just ask your stockbroker if they are
authorised to sell. It’s that simple.

Please what is the different between FGN treasure bill and bonds. Thank u

The DMO just announced the coupon for the Federal Government Savings Bond to be 13.01%. Below is a summary of the offer: 2-Year FGN Savings Bond due March 22, 2019: 13.01% Coupon: 13.01% Opening Date: March 13, 2017 Closing Date: March 17, 2017 Settlement Date: March 22, 2017 ISSUER: Federal Government of Nigeria (“FGN”) UNITS OF SALE: N1,000 per unit subject to a minimum Subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000. INTEREST PAYMENT: Payable Quarterly REDEMPTION: Bullet repayment on the maturity date.

ozome15:

Please what is the different between FGN treasure bill and bonds. Thank u

In FGN savings bond you get your interest per annum .

ihedioramma:
@ OBAGADAFFI,Timmi and IHelp you are wellcome .

We are here

OBAGADAFFI:


We are here

Wellcome sir . we will like you people to drop in more news about the savings and changes in the FGN savings BOND here thank's.

i'm surprised Nigerians fall for this every time.

if you're financially sound, you'll know that this is not something to invest in.

firstly, you can make an investment decision of you're not aware of the details that governs your reward i.e. the interest rate. FGN has made it clear that the interest rate will be regulated between the buyer and themselves.

please note that any interest rate that does not exceed the current inflation rate (approx 18%) is NOT profitable. if you buy N10,000 worth of goods (lets say 25 kg of Garri) today and 2 years down the line, the value drops to N6,000 in 2 years (can only afford 12 kg). how then do we think an interest rate of 10-20% can yield you profit?

It's simply an avenue to get people's money into the system and the government use it to raise fund at your own expense.

These bonds could have been good if the maturity period was longer, that gives room for stability and being optimistic, crashes inflation rate (rare in emerging african markets).

@finch007, is best to save the money in FGN savings bond than to keep your money in bank

ihedioramma:
@finch007, is best to save the money in FGN savings bond than to keep your money in bank

In my opinion, it's best to invest your money in real estate, foreign/Int'l bonds or Stock Index (please note that i didn't say common stock but it's index e.g. NSE 30 etc.).

finch007:


In my opinion, it's best to invest your money in real estate, foreign/Int'l bonds or Stock Index (please note that i didn't say common stock but it's index e.g. NSE 30 etc.).

What are you trying to say? .

*.

you can check the NSE website, there are a few foreign bond listed.

Houstency:


Boss, how do one invest in foreign/intl bonds from Nigeria please??

finch007:
you can check the NSE website, there are a few foreign bond listed.

There ? at what price and name?

Since the capital market crash in 2008, most investors especially those at the retail end of the market have found it difficult to return to the stock market despite the regulators (Securities and Exchange Commission, Nigerian Stock Exchange) and other stakeholders efforts to convince them. The reason was that most of them suffered significant losses after the crash and have become very skeptical of investment in stock market. But, recent decision of the Debt Management Office (DMO) to issue a new retail investment programme called the FGN Savings Bonds may change that equation. According to DMO, the retail savings bond product which is the first of its kind will be made accessible to all income group for subscription at N5,000 per unit with a maximum subscription of N50 million and a tenure ranging from 2-3 years. Speaking during the recent listing of the US $1 billion FGN Eurobond on the Nigerian Stock Exchange (NSE) .

Director
General, DMO, Abraham Nwankwo hinted
that government’s plan for the market
was to democratise its activities in the
bond market by making it easily accessible to most Nigerians so as to
ensure continuous development of the
domestic market and to bridge
infrastructure deficit constraining
economic growth.
He further said, “By promoting retail participation in the bond market, the goal
is aimed at encouraging participation in
investments and driving financial
inclusion in the country will be further
enhanced”
This represents an opportunity for investors to harness the huge benefits
derivable from the retail bonds, but the
question is do these investors really
know what an FGN savings bond is? Is
cash accepted? Are there returns on
investment and if there is, how will it be paid or how can I benefit from the
savings bond?
What is a FGN Savings Bond?
This is a retail savings product issued by
the DMO on behalf of the Federal
Government which is accessible to all income groups .

and guarantees interest payment and repayment of principal. Can savings bonds be sold before maturity? The bond can be traded on the floor of the Nigerian Stock Exchange through Stanbic IBTC Stockbrokers Limited or any other designated broker What are the benefits? •The savings bond earns you an interest that will be paid quarterly directly into your bank account. •The savings bond is safe and is backed by the full faith and credit of the FG. FGN T-Bonds hardly default, so you are nearly 100% sure that you will get your money back in full along with the interest. •You need not be rich to invest as anyone with as little as N5,000 can invest in the bond. •FGN savings bond is a good way to save towards your marriage, an occasion, school, project, retirement etc. •You can also use the savings bond as a collateral to get a loan from a bank and/ or finance house. What are the risk? FGN Bonds are often said to be ‘risk free’ because the Federal Government hardly defaults on debt repayments .

How much can I invest? Retail investors looking to invest in the FGN Savings Bond only need a minimum of N5,000 to invest. Subsequent investment over N5,000 will be in multiples of N1,000. Meaning that you cannot invest N5,500 or N12,700. It’s either N6,000 or N13,000 or N30,000. The maximum amount a single retail investor can invest in the FGN Bond is N50 million Returns on your investment The interest rate for the bond will be fixed by the DMO based on market parameters and coupon will be paid quarterly. As regards the procedure of buying the savings bonds, investors will be required to complete and submit subscription forms and make payment to stock broking firms and a CSCS account must be opened by each investor through a stock broking firm for the lodgement of the FGN savings bond before the offer and to enable retail trading of the bonds on the floor of the NSE.

If an investor already has a CSCS account, he will be required to provide bank account details at the point of account opening for coupon payment. While the government looks to raising fund to finance critical infrastructure projects such as power, roads and rail, projects aimed at diversifying the economy away from oil, the judicious use of funds generated will no doubt bring a positive turn-around to the economy even as experts have predicted that the economy will come out of recession. The Savings Bond will help the Federal Government mobilize domestic resources for deployment into important capital projects to reflate the economy and will be of benefit to the ordinary Nigerian. Chief Executive Officer, Arthur Steven Asset Management Limited, Olatunde Amolegbe, said the FGN savings bonds will have an immediate multiplier effect on all the sectors in the economy and will help to reduce the negative impact of inflation.

Dear Client, This is to inform you that the Federal Government of Nigeria Savings Bond offer for the month of April-2017 will open on the 3rd of April-2017 and remain open for five working days till the 7th of April-2017.

Please educate us more on what happens if you want to sell before maturity and again, what and what determines the value of the bond? and how do we keep track of these

DCNM:
Please educate us more on what happens if you want to sell before maturity and again, what and what determines the value of the bond? and how do we keep track of these

Read the post well sir/ma

The Nigeria Stock Exchange (NSE) wednesday approved the listing of N2.067 billion Federal Government of Nigeria (FGN) Savings Bond on the floor of the exchange. NSE Chief Executive Office, Oscar Onyema, who approved the listing, when a team from the Debt Management Office (DMO) visited the trading floor of the NSE, praised the DMO for its commitment for growing the savings bond market. DMO Director-General, Dr. Abraham Nwankwo, who sounded the closing gong at the NSE said approval of the bonds listings which came with 13.01 per cent coupon was key to empowering the grassroots into achieving sustainable wealth creation. Nwankwo said: “It’s an exciting day for Nigerian and DMO in particular. We were giving the opportunity to introduce a savings bond with the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and other relevant agencies for supporting our efforts”. He said the federal government want to ensure that progress being witnessed in the economy, reaches and benefits the grassroots. The DMO boss said that out of the 2,555 people that subscribed for the offer, over 95 per cent were individuals consisting of ordinary Nigerians on the street including barbers, hairdressers, vulcanizers teachers, motor park workers among others. “These are the people that subscribed for the offer. We are so excited and happy that Nigeria has broken the jinx to make sure that everybody in the country is part and parcel of activities in the capital market. And that is very consistent with the plan of the Federal Government. I repeat that whatever progress Nigeria is making should be inclusive and ordinary people should be part and parcel of it so we are happy that this aspect of the change agenda has been implemented and this will continue every month,” Nwankwo said. Continuing, he said the funds realized from the offer will be used to fund the budget deficit, and refinance matured existing/domestic bonds. He said that the bond refinancing makes it possible for the FGN Savings Bond will continue in perpetuity, and on monthly basis. “The April 2017 offer will coming up on April 3, and it will continue every first week of the month. Nigerians will continue to benefit from the FGN Bonds. We congratulate the NSE for their continued initiative and operation for helping to make the listing a success,” he said. He said the FGN Savings Bond has helped the ordinary Nigerians to participate in the capital market with create benefits that will accrue to their investments. “What the federal government has done through the FGN Savings Bond is to make this opportunity not only for the big investors from pension firms or banks to be part of it, but also for the ordinary man on the street to participate. Another benefit here is to give every Nigerian opportunity to participate in the capital market and it is an inclusive programme that allows everyone to be part and parcel of it. The bond can also be used as collateral to borrow money from banks, more importantly the bond is liquid,” he said. He explained that for investors that invested in the two-year bond, such investors can sell their bonds before the maturity if they have urgent need for money because the offer is listed on the stock exchange. “There will be continuous campaign, advertisement and interactive sessions and we expect the media to play a big role in disseminating this information of the FGN savings bond so that more Nigerians will be part and parcel of this movement. The federal government and the DMO will continue to do all it can to ensure information is disseminated concerning the offer,” he said. Nwankwo said over 120 stockbrokers are actively marketing the bond in the nooks and crannies of Nigeria to make sure people partake in it. The FGN Savings Bonds are debt instruments offered by sovereigns to mobilise resources from the general public, especially individuals and small savers. It offers guarantees that help to stimulate and deepen the savings culture among households, assists in the diversification of funding sources for the government and establishes benchmarks for other issuers. It equally encourages financial inclusion across the social and economic strata. The bonds will be “good for savings towards retirement, marriage, school fees, house projects,” the DMO said. A