- ‘FG Raised N6.3bn From Savings Bond in Seven Months’
The government has raised N6.3bn through the issuance of monthly Federal Government of Nigeria Savings Bond in the last seven months, the Debt Management Office has said.
The new bond was introduced to the country in March and the last offer was made about two weeks ago and lifted the contribution of the bond to the government’s coffers to N6.3bn.
According to the DMO, Federal Government securities are the safest of domestic investments because they are backed by the full faith and credit of the government.
In a statement issued in Abuja on Tuesday, the DMO explained that it began the issuance of the savings bond in March with an initial two-year bond offer, and subsequently added a three-year bond from April.
It said that the FGNSB was designed to suit the investment preferences of the retail investor and would continue to take investment opportunities to the grassroots.
“Since March when the bonds were first issued, a cumulative total of N6,305,492,000.00 has been raised, with N3,602,949,000.00 raised for the two-year and N2,702,543,000.00 for the three-year,” the office said.
It explained that the FGNSB had helped to stimulate and deepen the savings culture among households, while assisting in the diversification of funding sources for the government, adding that it had also encouraged financial inclusion across the social and economic strata.
Specifically, the FGN Savings Bonds give investors access to investment opportunities enjoyed by institutional investors. The investors in the bonds are given an opportunity to contribute their quota to the economic growth of the nation while earning good income.
According to the DMO, the FGNSB is capable of boosting savings culture among Nigerians. The minimum amount that can be invested is N5,000. This makes it accessible to the retail market, while the maximum investment is N50m.
For the government, the savings bond will shore up access to funds available for investment in the economy, thereby facilitating economic growth. It equally enables the individual to enjoy those benefits, which accrue to big investors in the capital market, the DMO stated.