registered bond
Registered Bond: a bond whose owner is recorded by name with the issuer, so payments and ownership follow the person on record, not whoever holds the paper.
In plain English
If somebody stole your bond certificate right now, would they be able to walk into a bank and collect your interest? That question is exactly what a registered bond was built to answer, and the answer for a registered bond is a firm no.
With a registered bond, your name sits in a register kept by the issuer or their agent, the same way your name sits on a property title or a shareholder list. When interest falls due, it goes to whoever is written in that register, not to whoever happens to be holding a piece of paper. Ownership changes hands only when the register is updated, usually through proper transfer paperwork.
Nigerians who buy Federal Government of Nigeria bonds through the CSCS system are already living this idea, even if nobody calls it by name. Your bond exists as an electronic entry tied to your CHN, and CBN or the registrars know exactly who you are. Compare that to an old style bearer bond, where whoever physically holds the certificate is treated as the owner, no name attached, no register to check.
A relative in London sending money home to help a parent buy Nigerian treasury bonds will appreciate this even more. Because the bond is registered in the parent's name, there is a paper and digital trail proving who owns what, which matters enormously if there is ever a dispute, a lost document, or an inheritance question years later.
Registration is really about accountability. It slows down fraud, makes theft nearly pointless, and gives every coupon payment a clear, traceable destination.
Mrs Adeyemi buys a ₦2,000,000 FGN bond registered in her name through her stockbroker. Every six months, the ₦140,000 coupon at a 14% rate lands in her account automatically, because the registrar has her name, more than a certificate number, on file.
Questions people ask
Can a registered bond be sold or transferred to someone else?
Yes, but the transfer must be recorded with the registrar or issuer. Ownership only changes officially once the register is updated, unlike a bearer bond where simply handing over the certificate does the job.
Is a registered bond safer than a bearer bond?
Generally yes. Because ownership is tied to a name on record, a lost or stolen certificate is far less useful to a thief, and payments always go to the recognised owner rather than whoever is holding the paper.
Are most Nigerian government bonds registered?
Yes, bonds bought through the Nigerian stock exchange system and held in CSCS accounts are effectively registered electronically, with your details tied to your CHN, making ownership easy to prove and track.
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