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.
The Divisional Head, Capital Markets at NGX, Jude Chiemeka, made this known during the recent NGX Savings Bond webinar 2023 organised by the Exchange in collaboration with Optimus by Afrinvest, a foremost fintech platform, supported by the Debt Management Office (DMO) and CSL Stockbrokers.
Chiemeka noted that the webinar was aimed at creating more awareness on 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.
While stating that the retail savings bond product was introduced by the Debt Management Office (DMO) on behalf of the federal government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians and to ensure continuous development of the domestic market and also bridge infrastructure deficit which has been a constraint to economic growth, he revealed that activities in the FGN Savings Bonds market have remained on the upward trend in the current year.
“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 (Total allotments from January – May stands at N5.06 billion). However, there remains opportunity 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 offers an opportunity for investors to taper negative real interest rates,” Chiemeka said.
He thereafter said that the Exchange remained keen to the provision of an efficient, liquid and transparent market for investors and businesses in Africa, to access capital and build wealth ,while adding that it continue to collaborate with all market stakeholders for the collective growth and development of the capital market in Nigeria.
Meanwhile, the Director-General, DMO, Ms. Patience Oniha, represented by the Director, Market Development Department, DMO, Monday Usiade, during the webinar, revealed that the federal government had successfully raised N50.2 billion from about 35,000 subscribers so far.