The Federal Government, through the Debt Management Office, has failed to make coupon payments on two savings bonds due to ongoing system and processing issues.
As a result of this, the office has missed two coupon payments in two months.
A report by Bloomberg stated that the first coupon payment on the two-year and three-year debt instruments, through which the government raised N4.2 billion in June, was due on 12 September, 2024, but remains unpaid.
In the report, the DMO’s Director-General, Patience Oniha, attributed the delay to system and process issues that are “being addressed.”
“I expect an outcome today,” she said in a response to Bloomberg’s question on Friday.
It added that subscribers to other savings bonds said there was a week delay in coupon payments due in August, the first time they experienced a hold-up since the introduction of the instruments seven years ago.
When contacted for further explanation, the DMO’s Head of Publicity, Hannah Momodu, confirmed the issue but assured that the issue would be resolved today.
Responding in a chat, she said, “Sincerely, we are experiencing major system and processing issues which have affected payments this month.
“While we have been able to process some payments to subscribers, it’s unfortunately being done in batches due to the system challenges we are actively working to resolve.
“We are making every effort to have all network and processing issues fully sorted out today (Friday).”
The DMO sold the notes that were due to pay coupons on 12 September at 17.4 per cent for the two-year and 18.4 per cent for the three-year from June 3 to 7, according to a statement on the debt agency’s website.
Coupon payments are scheduled to occur quarterly on the 12th of September, December, March, and June.
The savings bond introduced in 2017 aimed to diversify Nigeria’s borrowing sources and offer retail investors an opportunity to earn income by investing in government securities.
The main goal of these bond offers is to generate significant capital to support the government’s fiscal policies and infrastructure development initiatives.
