Today is the last day to buy Nigeria’s special $500 million dollar bond. The selling stops today, Friday. Everyone who buys will get their bonds settled by September 6, 2024.
The Nigerian government started selling this special bond on August 19, 2024. If you buy this bond, you will earn 9.75% interest every year.
This bond will end in 2029. You could buy it from August 19, and today, August 30, 2024, is the last day to buy it.
What You Need to Know About the Bond
This bond is a big deal for Nigeria. It helps the country get money from both people inside and outside Nigeria.
This bond lasts for five years. Every six months, you will get some money from it, called a coupon payment.
If you want to buy this bond, the smallest part you can buy, called a unit, costs $1,000. But you need to start with at least $10,000, which is 10 units. After that, you can buy more in $1,000 steps.
When the bond ends in five years, you will get all your money back in one payment. This is called a bullet repayment.
Different types of people can buy this bond. If you live in Nigeria, have savings overseas, are a Nigerian living outside the country, or are a big investor, you can buy it.
The bond is safe to buy because it follows many laws. It’s protected under the Trustee Investment Act and Pension Reform Act, so even pension funds can invest in it. It also has tax benefits under the Company Income Tax Act and Personal Income Tax Act.
The government made this bond to get money from inside Nigeria and from Nigerians living abroad. It’s a safe and good way to invest because the Federal Government of Nigeria supports it.
The bond will be listed on big markets like the Nigerian Exchange Limited and FMDQ OTC Securities Exchange Limited. This means you can buy and sell it easily.
United Capital Plc is leading the sale, and other companies, like Meristem Capital Limited, Stanbic IBTC Capital Limited, and Vetiva Advisory Services Limited, are helping too.
Banks like Access Bank Plc, Citibank Nigeria Ltd., and Guaranty Trust Bank Ltd. are also part of the deal. They help to make buying and selling the bond easier.
Important Things to Remember
This bond is one way the Nigerian government is getting money from outside. It’s to help keep money in the country strong, build important things, and balance the budget.
Wale Edun, the Minister of Finance, said that this $500 million bond will help keep Nigeria’s money reserves full and make the dollar rate stable.
The government hopes people will buy up to $1 billion of these bonds.
Everyone who wants to buy needs a Bank Verification Number (BVN) and a National Identification Number (NIN). This is very important and was shared by the Debt Management Office (DMO).
You cannot buy this bond with cash. You must use electronic transfers to the given accounts to buy it.