![]() ![]() For instance, following the approval of Mr. Special Purpose FGN bonds are bonds issued to meet specific needs of the federal government. To enhance and deepen the savings and investment opportunities.To develop the domestic bond market on a sustainable basis.To establish a benchmark yield curve, which acts as a reference for pricing other bonds issued by other bodies.To restructure the existing debt stock of short term debt to longer term obligations.To enhance fiscal discipline and for the management of monetary policies.To finance government deficits in a non-inflationary and sustainable manner.Others include Bonds issued for the funding of Abuja Express ways (Airport Road and Kubwa) and to settle Local Contractors Debts. Special Purpose FGN bonds are bonds issued to meet specific needs of the federal government, such as special purpose bonds issued to selected banks for settlement of N75 billion pension arrears in 2006, five deposit money banks participated in the private placement arrangement. To diversify government financing sources.To sustain the development of other segments of the Bond market.To enhance and deepen the savings and investment opportunities of the populace.To develop and ensure liquidity in the domestic bond market on a sustainable basis.To establish benchmark yield curve, this serves as reference for pricing bonds issued by other bodies, especially the private sector issuers.To refinance maturing debt obligations of the Federal Government.To enhance fiscal discipline of the Government.To finance government fiscal deficits in a non-inflationary and sustainable manner.The Federal Government of Nigeria (FGN) issues Bonds for the following reasons: ![]() Why Federal Government of Nigeria issue Bonds? The interest income earned from the securities are tax exempt. They have no default risk, meaning that it is absolutely certain your interest and principal will be paid as and when due. The FGN Bonds are considered as the safest of all investments in domestic debt market because it is backed by the ‘full faith and credit’ of the Federal Government, and as such it is classified as a risk free debt instrument. When you buy FGN Bonds, you are lending to the FGN for a specified period of time. The FGN has an obligation to pay the bondholder the principal and agreed interest as and when due. About FGN Bonds An Introduction to FGN BondsįGN Bonds are debt securities (liabilities) of the Federal Government of Nigeria (FGN) issued by the Debt Management Office (DMO) for and on behalf of the Federal Government. ![]()
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