The Federal Government has in the last seven months, raised N6.3 billion through the monthly Federal Government of Nigeria Savings Bond (FGNSB) issuance which began in March this year.
The N6.3 billion mark was realised with the FGN Savings Bond (FGNSB) Offer for September, 2017.
The DMO said that Federal Government Securities are the safest of domestic investments because they are backed by the ‘full faith and credit’ of the government. It explained that it began the issuance of the FGNSB in March 2017 with an initial 2-Year Bond Offer and subsequently added a 3-Year Bond from April.
It said the FGNSB was designed to suit the investment preferences of the retail investor and will continue to take investment opportunities to the grassroots.
“Since March 2017, when the Bonds were first issued, a cumulative total of N6,305,492,000.00 has been raised, with N3,602,949,000.00 raised for the 2-Year and N2,702,543,000.00 for the 3-Year,” the DMO said.
The FGNSB has helped to stimulate and deepen the savings culture among households, while assisting in the diversification of funding sources for the government. It also encourages financial inclusion across the social and economic strata.
Specifically, the FGN Savings Bonds give investors access to investment opportunities enjoyed by institutional investors. The investors in the bonds are given an opportunity to contribute their quota to the economic growth of the nation while earning good income. I foresee a situation where, youths, students, traders, name it, operating in the economic space or playing field, do not have difficulty in investing their money because of the benefits that come with the bonds,” an analyst said.
The FGNSB is capable of boosting savings culture among Nigerians. The minimum amount that can be invested is N5,000 which is accessible to many Nigerians, while the maximum investment is N50 million.
For the government, the savings bond will shore up access to funds available for investment in the economy, thereby facilitating economic growth. It equally enables the individual to enjoy those benefits which accrue to big investors in the capital market.
The DMO said the Savings Bond would empower Nigerians economically, describing it as a window principally designed for retail investors with a view to providing opportunity for investors to contribute to national development because it improves the savings culture in the country.