“Interest is payable semi-annually while the bullet repayment is made on maturity,” the DMO said.
It added that the FGN bonds qualify as securities in which trustees can invest under the Trustee Investment Act. “They also qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.“All FGN bonds qualify as liquid assets for liquidity ratio calculation for banks,” it said.
It added that they were backed by the full faith and credit of the Federal Government and charged upon the general assets of Nigeria. The News Agency of Nigeria (reports that government securities like FGN bond, FGN savings bond and the Sukuk bond constitute local components of government borrowings.All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
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