Nigerian Exchange Limited (NGX) has said 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, said this during the 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 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.
He said 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 to ensure continuous development of the domestic market and bridge infrastructure deficit which has been a constraint to economic growth.
According to him, activities in the FGN Savings Bonds market have remained on the upward trend in the current year.
“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 while 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 and the yields on FGN Savings Bond which are in double digits offers an opportunity for investors to taper negative real interest rates,” he said.
Meanwhile, the director-general, DMO, Ms. Patience Oniha, represented by the director, Market Development Department, Monday Usiade, during the webinar, revealed that the federal government had successfully raised N50.2 billion from no fewer than 35, 000 subscribers so far.