FG advocates national savings to boost capital market liquidity
...DMO offers March bonds at 12% interest rate
The Minister of Finance, Mrs Zainab Ahmed, has said the Federal Government is willing to set up a national savings committee that will make recommendations on the best ways to mobilise savings that would lead to economic growth.
Mrs Ahmed stated this when she held a meeting with members of the Capital Market Master Plan Implementation Council (CAMMIC) in Abuja, yesterday.
She said there is need for Nigerians to imbibe the culture of savings to enable them to participate actively in the capital market as a means of growing the economy.
Ahmed said government is concerned about the volatility of the capital market and is ready to work with CAMMIC to ensure that the market is stable.
“We know we need foreign investors in our market, but most importantly we need to grow our domestic investors that are here to stay. The foreign investors come in and when anything happens, they quickly take their money and go away but our domestic investors will always be here with us,” she said.
In another development, the minister has also expressed the readiness of the ministry to collaborate with the Institute of Chartered Accountants of Nigeria (ICAN) especially on areas of training the ministry’s staff.
The minister made the commitment in Abuja when ICAN executives led by the president, Alhaji Razak Adeleke Jaiyeola, visited her.
Meanwhile, the Debt Management Office (DMO) is offering two and three years savings bonds for the month of March at 11.62% and 12.62% interest rates respectively.
This was contained in a document published on the DMO website..
The interest of the bond is payable quarterly, and the bond costs N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 subject to a maximum subscription of N50,000,000.
The office raised an excess sum of N84 billion at the February FGN Bond Auction.
It said the total subscription received from bidders for the month of February was in excess of N234 billion, against N150 billion offered and that demand at the auction was concentrated on the 10-year bond which was 392% subscribed.
Allotments were made to successful bidders at 14.52%, 14.79% and 14.93% for the 5 year, 7 year and 10-year bonds respectively.
DMO also said a total of N150 billion was allotted to bidders at the auction and the proceeds will provide additional financing for the budget.