In the Frequently Asked Questions (FAQ) document released by the Debt Management Office (DMO) on its official website, the Federal Government has announced that investors interested in participating in its latest financial offering must meet specific identification requirements.
According to the FAQ, all Nigerian citizens, including those living abroad, are required to have a Bank Verification Number (BVN) and a National Identification Number (NIN) to subscribe to the domestic dollar bond issued on Monday.
This bond is part of a larger $2 billion program, with the government aiming to raise $500 million in this initial tranche from both local and international investors.
Eligible investors include Nigerians residing in Nigeria, those in the diaspora with foreign exchange savings, and foreign institutional investors.
The DMO's FAQ states, "A BVN and NIN are required for subscription. Nigerians in the diaspora can apply for both BVN and NIN if they don’t already have them."
Furthermore, the DMO has clarified that cash payments will not be accepted for this bond. Instead, all transactions must be conducted through electronic transfers to designated accounts.
Subscriptions can be made either electronically or via financial institutions. For those wishing to use funds from their domiciliary accounts, the money must have been in the account for at least 30 days prior to the application date.
The funds raised from this bond will be allocated to critical sectors of the Nigerian economy, as approved by the President based on recommendations from the Minister of Finance and Coordinating Minister of the Economy.
With a coupon rate of 9.75 percent per annum over a five-year term, the bonds are designed to attract both domestic and international investors, with a minimum subscription amount set at $10,000.
