Per Second News—Mr. Ayodale Afolabi, Director, Portfolio Development Department, Debt Management Office (DMO); Mr. Oscar N. Onyema, OON, Chief Executive Officer,
The Nigerian Stock Exchange (NSE), Dr. Abraham Nwakwo, Director General, DMO; Mr. Haruna Jalo-Waziri, Executive Director, Capital Markets, NSE and Mr. Abubakar Sani Kolo, Head, Portfolio Development Department, DMO at the Listing of Series 1 of the FGN Savings Bond (N2,067,961,000.00) at the Exchange today.
The Federal Government Saving Bond is a game changer for Nigerians, especially for retail investors who have not been prominent players in the country’s capital market. The Debt Management Office, has announced that the FG will put on sale savings bonds with two to three-year maturities. Although Interest rate for the bond has not been announced yet, but going by the rate of other FG bonds, it is expected to be up to 16.5 percent or more and will be paid quarterly. The FG intended to raise money locally to offset growing budget deficit through the bond. The government depends on local borrowing to fund more than half its budget deficit, which is expected to reach N2.36 trillion this year.
The bond issuance is part of the Federal Government programme targeted at the lower income earners to encourage savings. Up till now, you have to be among the high-net-worth Nigerians to be a player in the capital market and earn fantastic returns on your investments.
The FG Saving bond will change all that as ordinary Nigerians with as low as N5000 have the opportunity to invest in this bond.