Subscriptions for FGN bonds rose from N100m to over N1bn in month — DMO

The Debt Management Office (DMO) stated that subscription to FGN savings bonds has increased from about N100 million to over N1 billion in the last few months.

This was said in an interview on Tuesday in Ibadan by Mr. Monday Usiade, Director, Business Development Department of the DMO.

The DMO urged more Nigerians to invest in the various Federal Government securities to diversify their investment portfolios. The DMO stated that it is specifically targeting retail investors.

The Federal Government Securities Issuance Awareness Program, which is being organised by DMO and CSL Stockbrokers Limited in various regions of the country, was the backdrop against which DMO spoke.

Usiade asserted that it was incorrect to assume that the DMBs and their partner stockbroking firms were in direct rivalry with the DMO.

“We can encourage Nigerians to invest in the various Federal Government securities to diversify their investment portfolios and improve their earnings.

“We cannot undermine the integral role of the DMBs in the financial system and delivering our mandate. We also need the banks to execute our mandate,” he said.

Usiade claimed that the awareness campaign was a component of DMO’s market expansion effort. He noted that the response has been positive and that investments in the FGN savings bond, which was created especially for retail investors, have been rising gradually.

He said, “We are taking awareness about advantages of fixed-income investment, and we are specifically targeting the retail investors. We have seen an increase in subscription to FGN savings bond from about N100 million to over N1 billion in the last few months.

“This means that the programme is having the desired impact,” he added.

Speaking earlier at the FGN Security Issuance awareness programme jointly organised by DMO and the stockbroking firm of FG, CSL Stockbrokers Limited, Director General of DMO, Patience Oniha stated that it is more profitable for Nigerians to invest their funds in the Federal Government of Nigeria (FGN) savings bonds than to save in banks. Earlier this month, the DMO on behalf of the Federal Government has announced the offer for subscription of the June 2022 Federal Government Savings Bond to investors.