FG Bonds Record N13.44 billion Investment In Two Years

The Debt Management Office (DMO), has announced that the Federal Government (FGN) savings bond established in May 2017, has recorded a total of N13.44 billion investment.

A breakdown showed that so far in 2019, N1.02 billion and N1.72 billion were recorded in the first and second quarters (Q1, Q2), respectively.

Last year, the bonds achieved N583 million in Q1, N740 million in Q2, N1.21 billion in Q3, and N1.02 billion in Q4.
At the inception of the offers in 2017, about N2.07 billion, N2.69billion, N1.55 billion, and N891million worth of investments were recorded in Q1, Q2, Q3, and Q4, respectively.

Further analysis showed that 431 corporate invested N1.75 billion while 15,822 individuals invested N11.75 billion, bringing the total amount to N13.5 billion.

The Head, Market Development, DMO, Monday Usiade, while addressing participants during the NSE, DMO, Stanbic IBTC Stockbrokers 2019 Retail Bond Workshop, in Lagos, on Tuesday, expressed dissatisfaction with individual investors’ patronage of the bond, saying a lot needed to be done to attract more investors into the net.

Usiade, who was represented by Ms. Bose Olafisoye, said 77 per cent of the investors were from the Southwest while eight per cent were from the Federal Capital Territory, and South-South, respectively.

Furthermore, he said four per cent came from the South-East and foreign investors, respectively, while the remaining three per cent were from North-East and North Central.

Usiade added that Jigawa and Yobe states recorded zero subscriptions, while Lagos, FCT, Oyo and Ogun contributed 75.54 per cent of the total investment.

This comes as the Nigerian Stock Exchange (NSE), also disclosed that only about three per cent of Nigerian adult population currently participates in the capital market.

According to the Exchange, this is an indication that there is a need for increased collaborative efforts in promoting higher levels of financial inclusion in Nigeria.