The Federal Government Savings Bond has reportedly received a total subscription of N45.135 billion between 2017 and 2022, according to the Debt Management Office.
On Tuesday in Lagos, Patience Oniha, the director general of the DMO, said this.
According to her, the savings bond was expressly created to motivate retail investors who, according to the figures, had performed well across the nation’s six geopolitical zones.
She claims it is a product the DMO unveiled in March 2017 to allow individual investors to engage in the market for federal government assets and advance financial inclusion.
The stakeholders meeting, according to her, was planned to discuss the performance of the FGN Savings Bond and to introduce the platform.
Oniha said that the DMO worked with the Central Securities Clearing System to develop the portal.
“This explains why the Primary Dealers Market Makers, Central Bank of Nigeria, Securities and Exchange Commission, Nigeria Exchange Limited and stockbroking firms have been invited.
“The DMO believes that the product has more potential than what has been achieved so far, and has for now, identified two ways to achieve much higher volumes and numbers of investors,” she said.
In 2022, the DMO embarked on investor sensitisation programmes across a number of cities in Nigeria.
“This strategy proved successful as total subscription almost doubled from N8.396 billion in 2021 to N16.589 billion in 2022.
“Given this outcome, the DMO plans more of such sensitisation, as well as wider publicity.
“The other strategy is to deploy technology to the process to make the subscription fast, easy and overall, more convenient,” she added.
She said that the portal had been tested with distribution agents for the Savings Bond, adding that the presentation was to expose it to a wider group of stakeholders.
In a paper presentation, Bose Olafisoye from the DMO, said it was introduced as part of market development initiatives of the office.
According to Olafisoye, there is a higher and increasing investor appetite for the three-year FGN Savings Bond relative to the two-year bond, based on level of subscription.
“This could be due to the 100 basis points difference in the coupons and investors preference for longer maturities,” she said.
She said that there was the need to build on gains recorded over the years in the efforts to develop the retail segment of the bond market.
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