Investment opportunity: Earn 18% interest lending to Nigerian govt

The Nigerian government is offering citizens a chance to lend them money and earn a good return! This is done through FGN Savings Bonds, which are basically like government-issued IOUs.

Here’s a breakdown of what’s on offer:

• Interest Rates: You can choose between a 2-year or 3-year bond. The 2-year bond offers 17.046 percent interest per year, while the 3-year bond offers 18.046 percent interest per year.
• Minimum and Maximum Investment: You can invest any amount starting from N5,000, and in multiples of N1,000 thereafter. The maximum you can invest is N50 million.
• Investment Period: You choose either a 2-year or 3-year bond, depending on how long you’d like to lend your money to the government.
• Getting Your Money Back: You’ll get your initial investment (the principal amount) back in full at the end of the chosen term (two or three years).
• Interest Payments: The interest you earn is paid out every quarter (every three months).
• Safety and Security: These bonds are backed by the Nigerian government, so it’s a safe investment.

Here are some additional benefits to consider:

• Tax Advantages: The interest you earn on these bonds may be exempt from certain taxes.
• Easy to Sell: These bonds can be traded on the Nigerian Stock Exchange if you need your money back before the term ends.

Things to Keep in Mind:

• High Interest Rates: High interest rates can also indicate some risk. While the Nigerian government is backing these bonds, there’s always a small chance you might not get your money back if the government’s financial situation changes drastically.
• Limited Investment Window: The offer to buy these bonds is only open for a short period (from April 1st to April 5th).

Overall, FGN Savings Bonds offer a chance to earn a high return on your investment with a relatively low minimum investment amount. Carefully consider the risks and benefits before making a decision.

*This guide is intended to be informative and does not constitute financial advice. Before making any investment decisions, consider consulting with an advisor.