FG Raises N6.69bn through Savings Bond

Obinna Chima

In pursuit of the federal government’s objective of financial inclusion by attracting retail investors into the bond market, the government yesterday disclosed that it has raised a total of N6.69 billion through the monthly issuance of the Federal Government of Nigeria Savings Bond (FGNSB) since March this year. The amount raised since inception, according to a report, grew to N6.69 billion following the conclusion of the FGNSB Offer for October 2017.

Out of the N6.69 billion, N3.71 billion was for the 2-year Bond while N2.98 billion was for the 3-year bond. The Debt Management Office (DMO), which issues the FGNSB on behalf of the federal government said the high level of subscription by investors since the debut offer in March 2017, showed that the product appealed widely to investors.

According to the DMO, 9,103 subscriptions have been received so far from investors across the county. The report stated that analysts praised the DMO for introducing the savings bond into the securities market for retail investors and taking the instrument to the grassroots.

The DMO plans to sustain investor interest in the product through sensitisation of the public about the gains of investing in the bond which has a competitive fixed interest rate with its income exempted from taxes.