NGX Harps On Benefits Of Debt Instruments To Investors

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….says Savings Bonds’ allotments hit N5.06bn in five months

The Nigerian Exchange Limited (NGX) has charged Nigeria’s investing public, especially retail investors,  to explore the immense investment returns and other benefits of the Federal Government of Nigeria’s (FGN’s) debt instruments to improve their socioeconomic well-being on a sustainable basis.

The Divisional Head of Capital Markets at the NGX, Mr. Jude Chiemeka, who gave this charge during the NGX Savings Bond webinar 2023, organized by the Exchange in collaboration with Optimus by Afrinvest, supported by the Debt Management Office (DMO) and CSL Stockbrokers, hinted that the total allotments for FGN Savings Bonds have risen to N5.06 billion in the first five months of 2023.

He said that the webinar was organized to increase awareness about the benefits of FGN Savings Bonds to the investing public, especially the retail segment of the market as this would enhance financial inclusion drive in the country.

Chiemeka explained that the retail savings bond was introduced by the Debt Management Office (DMO) on behalf of the Federal Government in 2017 to liberalize its activities in the bond market and by so doing, make it easily accessible to average Nigerians and achieve sustainable growth of the domestic investment market

He said: “FGN Savings Bonds market has 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 an opportunity for further participation by the investing public.

As inflation remains unrelentingly on the upward trajectory (Now at 22.22% as of May) the yields on FGN Savings Bond which are in double digits offer an opportunity for investors to taper negative real interest rates”, the divisional head added.

While assuring the investing public of the continued efforts of the Exchange to provide an efficient, liquid, and transparent market for investors and businesses in Africa to access capital and build wealth, the investment expert assured the public that the management would be strengthening its collaboration with all market stakeholders to boost the growth of the capital market in Nigeria.

Speaking at the webinar, the DMO Director-General, Ms Patience Oniha, commended the NGX on its enlightenment activities of retail investors on the benefits of the debt instruments being issued for subscription, especially the FGN savings bond,

The Director-General, who was represented by the Director, Market Development Department, Monday Usiade, explained that the DMO had been using the FGN savings bonds benchmark yield curve to price the bonds to ensure that retail investors get good returns on their investments.

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