Govt To Pay 13% Interest On Retail Savings Bond
Bounce brought you the story last week that the federal government plans to borrow from ordinary Nigerians.
Well, finally the day is here and the bond has gone on sale and the federal government has said it will pay 13.01% interest on the bond which will mature in two years.
The interest, as we told you earlier will be paid every three months.
The Debt Management Office (DMO) has said the savings bond will help broaden the country's funding base.
People will have the opportunity to buy into the bond scheme every month have a maximum subscription of 50 million naira.
This initial offer will close on March 17, the DMO said.
The government already believes that the money it has will not be enough to do all the things it plans to do this year and therefore wants to borrow money from Nigerians to make up what it has.
The government has said it will raise 130 billion Naira at its third domestic debt sale this year on March 15 and sell 1.13 trillion Naira worth of treasury bills (another borrowing) by half of the year.