The Federal Government is set to launch it first-ever savings bonds into the domestic bond market to link savings and investments with national infrastructural development and economic growth.
The bonds, to be known as Federal Government of Nigeria Savings Bond, will be marketed like the ordinary equities on the stock market and will be available to all Nigerians, including those with the smallest amount of money to invest.
The savings bond will bear all the regular features of a national bond, including the zero default rate of a sovereign issuance, fixed coupon or interest rate, privileges and exemptions from certain taxes and levies, as outlined by the Central Bank of Nigeria (CBN), Federal Inland Revenue Services (FIRS) and other government ministries, departments and agencies (MDAs).
A preliminary review of the framework for the savings bond indicates that the bond certificate could be used as guarantee and collaterals where such are required in transactions with the MDAs and private organisations.
