Savings through FGN bonds more profitable than banks – DMO

The Debt Management Office (DMO), says it is more profitable for Nigerians to invest their monies in the Federal Government of Nigeria (FGN) savings bonds than saving in banks. Patience Oniha, the Director-General of DMO said this in Ibadan at the FGN Securities Issuance awareness programme. The awareness programme was jointly organised by DMO and the stockbroking firm of the FG, CSL Stockbrokers Limited. Oniha, represented by Mr Monday Usiade, the Director, Market Development Department of the DMO, urged Nigerians to embrace investment in the various FGN Securities to enhance their earnings. “Saving is a culture we must all imbibe, and the FGN savings bond has come to help Nigerians save. The driving force is to encourage us to save in a secure environment. The Federal Government cannot default on a loan in its own currency,’’ she said.

The director-general said that the various FGN securities, like the Treasury Bills, FGN Bond, FGN Savings Bond, Euro Bond, Green Bond and Sovereign Sukuk, were already competing with the banks. “There is the need to challenge the banks to improve on their service delivery,’’ she said. According to her, the FGN savings bond is specifically designed for retail investors, and to encourage financial inclusion. She said that government borrowing was not necessarily a problem, provided the borrowings were invested on infrastructure development and investment in the productive sector of the economy. Earlier, Mr Fortune Ibe from CSL Stockbrokers Limited, said that the investment in FGN Securities was an additional way for Nigerians to make money.

Ibe said that the objective of the programme was to create awareness among retail investors. “The Federal Government is telling Nigerians that they can borrow their money for infrastructure and they will get interest rate on it. The interest rates on FGN securities is higher than what the banks will give you. With as little as N5,000, Nigerians can now invest in FGN savings bond. It is an avenue through which the government raises funds to develop infrastructure. It also contributes to the development of the financial market, attracts foreign investors into the financial market and enhances savings and investment opportunities of the populace,’’ he said. Some respondents at the programme expressed satisfaction at the various incentives and investment opportunities provided by the FGN Securities. (NAN)