Nigeria government says you must have a BVN and or NIN to partake in the 500 million dollar bond

The federal government has a firm point on who and how to subscribe to its $500m bond. Interested individuals must have a BVN and or NIN number. Here is what else you need to know about the Nigeria $500 million bond, it comes with a good interest rate to be paid in dollars.

Main Points:
1. New Financial Instrument Requirements:
- The Federal Government requires investors in its new domestic dollar bond to provide a Bank Verification Number (BVN) and National Identification Number (NIN).
- The bond is part of a $2 billion program, with the first tranche seeking $500 million.

2. Eligibility:
- Open to Nigerians in Nigeria, Nigerians abroad with foreign exchange savings, and foreign institutional investors.
- Nigerians abroad can apply for BVN and NIN if they do not have them.

3. Subscription Details:
- No cash payments; all transactions must be through electronic transfers.
- Subscriptions can be made electronically or through financial institutions.

- Funds from domiciliary accounts must be in the account for at least 30 days before applying.

4. Bond Features:
- The bond has a 9.75% annual coupon rate over five years.
- Minimum subscription amount is $10,000, lower than the typical $200,000 for Eurobonds.
- Income from the bond is tax-exempt.
- Listed on Nigerian Exchange Limited and FMDQ Securities Exchange Limited for liquidity.

5. Auction and Settlement:
- Auction open until August 30, 2024.
- Settlement date is September 6, 2024.

6. Purpose:
- Funds will finance critical sectors of the Nigerian economy.
- Aims to enhance external reserves and stabilize the foreign exchange situation.