The Federal Government of Nigeria has announced the offer for a subscription to the November 2022 Federal Government Savings Bond.
A circular issued by the The Debt Management Office (DMO) explained that there are two tranches of issuances — 2-year and 3-year savings bonds, with interest rates of 12.492% and 13.492%, respectively.
This shows that the interest rates increased from 11.382% and 12.382% in October for the 2-year and 3-year Savings Bonds.
Higher interests explained: The FGN Savings Bond yield has been on the rise since the Central Bank of Nigeria adopted a hawkish monetary policy to combat inflation in the country.
Recall that the CBN raised the monetary policy rate (MPR) by a combined 400 basis points to 15.5% in a bid to tame the surge inflation rate, which had touched a 17-year high in September 2022. Following the MPR rate hike, savings bond rates have also been rising to reflect the changes in the benchmark rate.
Between May and November, the interest rate for the 2-year FGN savings bond has moved from 7.934% to 12.492% per annum, while the 3-year bond has seen its rate increase from 8.934% to 13.492% in the same period. Nairametrics reports.