CEM REPORT | Federal Government Bonds can now be purchased for as low as N5,000, a window designed and made available by the Debt Management Office (DMO) to cater for inexperience retail investors.
This is to encourage the general public to diversify their investment portfolios by purchasing different Federal Government securities.
This is according to the Chief Executive Officer of a stockbroking firm, Abiodun Fagbohun who added that the DMO is collaborating with the stockbroking industry to ensure everyone can participate in the bond market, according to the News Agency of Nigeria.
“We created this window through the FGN Savings Bond, whereby retail investors with as low as N5,000 can also participate in the market. For example, if you put about N10,000 in your savings account, you will earn like 2% interest per annum.”
“With the FGN savings bond, you can earn between 9% and 10% interest per annum. It is a good opportunity which was not there for the retail investors before now,”
He said the general public has positively responded to the campaign by the DMO and CSL.
“We should let people know about the product and also make it easy for them to subscribe,’’
He maintained the position of the DMO on Federal Government borrowing through the various FGN securities.
“Nobody has a problem with debt; households take loans; businesses take loans. Such debts should be used for infrastructure projects and for the productive sector of the economy. The government has to make sacrifices and ensure fiscal prudence and continue to ensure that scarce resources are judiciously allocated,’’ Fagbohun said.
The DMO and CSL Stockbrokers Limited are jointly running the Federal Government Securities Issuance Awareness Program, in different parts of the nation, to encourage more Nigerians to look in to investment in different Federal Government securities as against saving in banks.
[READ ALSO] DMO Tell Nigerians to Invest in Savings Bonds
Recall that CEM reported that 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.