Economy
THE Debt Management Office (DMO), has assured prospective investors in Federal Government of Nigeria (FGN) securities of profitable yield on their investments.
The Director-General of the DMO, Patience Oniha, said this on Thursday in Maiduguri during the FGN Securities Issuance Awareness Programme in the capital city of Borno.
The News Agency of Nigeria (NAN) reports that the programme was jointly organised by the DMO and CSL Securities Limited, the stockbroking firm for the Federal Government .
Oniha, who was represented by Mr Abubakar Sani, DMO’s Deputy Director, Policy and Risk Management Department, said that the programme was designed to educate Nigerians about safe investment opportunities in FGN securities.
She described investment in FGN securities as the safest place for Nigerians to grow and diversify their finances.
According to Oniha, the various FGN security instruments, which constitute the local component of the country’s public debt, also contribute to developing the local financial market and deepening financial inclusion.
She said that they were backed by full faith and credit of the Federal Government of Nigeria and were default risk-free.
“One function of these FGN securities is to raise capital to finance deficits in the budget and also to raise funds to execute critical infrastructure projects.
“The Federal Government of Nigeria securities also contribute to the development of the domestic capital market, and they serve as a benchmark for other private institutions to issue their own securities.
“The idea of getting more Nigerians to invest in government securities is to also promote and encourage financial inclusion. ,” she said.
Mr Abiodun Fagbulu, the Managing Director, CSL Stockbrokers Limited, said that FGN securities were designed to accommodate all categories of Nigerians.
Fagbulu, represented by Mr Richard Akinmoladun, Head, Property Trading at CSL, said that government securities also enhanced the savings and investment opportunities of the populace.
He described FGN securities as financial instruments issued by the DMO on behalf of the Federal Government .
He listed the various investment platforms to include FGN bond, FGN savings bond, treasury bills, the green bond, and the Sukuk bond.
He said that the FGN savings bond was specifically designed for the retail investors to benefit, thereby promoting financial inclusion.
Fagbulu urged residents of Maiduguri to take advantage by investing massively in FGN savings bond, which had a minimum subscription of N5,000.
“The FGN savings bond was particularly designed to encourage Nigerians across all social status, thus promoting financial inclusion.
“The idea is to enable retail investors, who are mainly low income earners, also benefit from the investment opportunities in FGN securities.
“Federal Government of Nigeria securities are mostly fixed-income instrument under which the government is obliged to make payments of a fixed amount on a fixed schedule, once or twice a year, and repay the principal amount on maturity.
“Investors in fixed-income securities are, therefore, guaranteed a constant and secure return on their investments,” he said.
The News Agency of Nigeria (NAN) reports that the awareness programme was inaugurated in Lagos in March 2022.
It has also been held in Enugu, Ibadan, Kano, Yola, Umuahuia, Gombe, Osogbo, Port Harcourt, Benin, Uyo and Asaba. (NAN)
-September. 28, 2023 @ 11:48 GMT |
Tags: Debt Management Office Mr Abiodun Fagbulu Mr Abubakar Sani Mr Richard Akinmoladun PATIENCE Oniha
