Difference between Federal Government of Nigeria Savings and Treasury Bills.

This post helps us to know the differences between FGN savings and Treasury bills. Once upon a time when foreign investors in Nigeria who wish to invest in a risk-free short-term investment that but they find out that yielding securities are only limited to invest in treasury bills. However, earlier this year the Federal Government introduced the FGN Savings Bond as an alternative security to fixed income-loving retail investors.

But unlike Treasury bills, the FGN Savings bonds are longer in tenor and offers different investing propositions. In this brief article, we will help to differentiate between the two forms of investing, helping you decide what is good for you based on your investment appetite.

Common benefits and characteristics:

  • No fees or charges for subscriptions or bids
  • Both are listed on The Nigerian Stock Exchange and can be sold before maturity by investors through the secondary market
  • They are backed by the full faith and credit of the Federal Government of Nigeria
  • Interest income is exempted from tax
  • They can be used as collateral for loans.The major differences between the both of them are highlighted below:

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