​​​​​ ​​​ ​​​​BONDS asemonweb2.png
Bonds are debt securities that are issued to lenders of long term loans. It is basically an ‘’IOU’’ issued by one party to another. The bond holders, or investors, are the lenders, while the issuer is the borrower. The borrower promises to make periodic interest payments (called coupons) on the bond, as well as to repay the original loan (the principal) to the bond holder on a stipulated date (the maturity date).  

The common types of bonds listed and traded on The NSE are: ​​
  • Federal Government Bonds - are issued by the Federal Government of Nigeria (FGN) via the Debt Management Office, and listed on the NSE. The income earned on FGN bonds is tax free.
  • State/Local Government Bonds - are issued by is a state or local government. Just like FGN bonds, no Value Added Tax is charged on the proceeds of state and local government bonds.​
  • Supranational Bonds - bonds are issued by supranational organizations or institutions, such as the African Development Bank and the World Bank. Like government bonds, they have a high credit rating, and are regarded as the safest bond investments.​
  • Corporate Bonds - are issued by private and/or public companies. They normally have higher interest rates than government bonds. Some corporate bonds can be converted to equity if certain provisions are met – such bonds are called convertible bonds.

You can now buy and sell bonds through your stockbroker just like shares​. The directory of NSE dealing members is available here​.​ See Bonds Trading Statistics

To learn more about this h​ighly secure investment product, download  the documents below:​

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