DMO Tell Nigerians to Invest in Savings Bonds

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CEM REPORT | The Debt Management Office (DMO) has advised Nigerians to grow their wealth by investing in Federal Government savings bonds.

The DMO also said government borrowing was not necessarily a problem, provided the borrowings were invested on infrastructure development and investment in the productive sector of the economy.

This is according to the Director-General of DMO, Patience Oniha, at the Federal Government of Nigeria (FGN) Security Issuance awareness programme jointly organized by DMO and the stockbroking firm of FG, CSL Stockbrokers Limited, in Ibadan.

“Saving is a culture we must all imbibe, and the FGN savings bond has come to help Nigerians save.

“The driving force is to encourage us to save in a secure environment. The Federal Government cannot default on a loan in its own currency.’’

She urged Nigerians to embrace investment in the various FGN Securities like the Treasury Bills, FGN Bond, FGN Savings Bond, Euro Bond, Green Bond and Sovereign Sukuk, stating that they were already competing with the banks.

Oniha, who was represented by the Director, Market Development Department of the DMO, Monday Usiade, added that the FGN savings bond is specifically designed for retail investors, and to encourage financial inclusion.

[READ ALSO] DMO lists 2 new FGN savings bonds for subscription at N1,000 each

An Official at CSL Stockbrokers Limited, Fortune Ibe speaking at the event noted that investment in FGN Securities was an additional way for Nigerians to make money.

“The Federal Government is telling Nigerians that they can borrow their money for infrastructure and they will get interest rate on it.

“The interest rates on FGN securities is higher than what the banks will give you.

“With as little as N5,000, Nigerians can now invest in FGN savings bond. It is an avenue through which the government raises funds to develop infrastructure.

“It also contributes to the development of the financial market, attracts foreign investors into the financial market and enhances savings and investment opportunities of the populace.’’

According to Nairametrics, a FGN Savings Bond is a bond issued by the DMO on behalf of the Federal Government that is tailored and targeted at retail investors and includes a guaranteed interest payment and repayment of the principal.

The savings bond is targeted at ordinary Nigerians of all income groups, giving them the opportunity to earn an income through saving and investing. The bond is also expected to help promote the savings culture of Nigerians.

The federal government, through the DMO, issues the bonds and makes periodic interest payments to the investors, while the principal is paid at the end of each tenor.

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