The Nigerian Exchange Limited (NGX) has revealed that the total allotments for FGN Savings Bonds have risen to N5.06 billion in the first five months of 2023.
Divisional Head, Capital Markets at NGX, Jude Chiemeka, revealed this during the NGX Savings Bond webinar 2023 organised by the Exchange in collaboration with Optimus by Afrinvest, a foremost fintech platform and supported by the Debt Management Office (DMO) as well as CSL Stockbrokers.
Chiemeka noted that the webinar was aimed at creating more awareness of the benefits of FGN Savings Bonds to the investing public, especially the retail segment of the market as this would encourage participation in investments and further enhance financial inclusion in the country.
According to him, the retail savings bond product was introduced by the DMO on behalf of the Federal Government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians.
He disclosed that activities in the FGN Savings bonds market have remained on the upward trend in the current year (from January to May) with allotments at an average of N1.01 billion, adding that opportunity still exists for further participation by the investing public.
“As inflation remains unrelentingly on the upward trajectory (Now at 22.22 per cent as at May) the yields on FGN Savings Bond which are in double digits offer an opportunity for investors to taper negative real interest rates”, he said.
He said the exchange remains keen on providing an efficient, liquid and transparent market for investors and businesses in Africa to enable them to access capital and build wealth while collaborating with all market stakeholders to grow the market.
Director-General, DMO, Patience Oniha, represented by the Director, Market Development Department, DMO, Monday Usiade, revealed that FG had successfully raised N50.2 billion from about 35,000 subscribers so far.
Oniha said that the DMO uses the FGN bond benchmark yield curve to price the savings bond to ensure that retail investors earn comparable returns while commending the NGX on its role in enlightening retail investors on the opportunity that exists in the fixed-income securities market, especially concerning the FGN savings bond.
