NGX to Woo Retail Investors on Savings Bonds
Kayode Tokede
In line with its mandate to promote investor participation in Nigeria’s capital market, and enhance the secondary market, Nigerian Exchange Limited (NGX) in collaboration with Afrinvest is set to woo investors on the importance of investing in FGN Savings Bond.
The NGX Savings Bond webinar is expected to deepen the savings culture among retail investors; reduce the barrier to contributing to National development for all Nigerians irrespective of income level; provide insights that will enable participants to benefit from the favourable returns available in the capital market; and improve liquidity of FGN Savings Bond in the Secondary market.
It will be recalled that the DMO, on behalf of the Federal Government of Nigeria, launched a retail investment programme – the “Federal Government of Nigeria (FGN) Savings Bond” –to help enhance the savings culture among Nigerians while providing all citizens irrespective of income level, an opportunity to contribute to National Development; as well as the comparatively favourable returns available in the capital market.
FGN Savings Bond is safe and backed by the full faith and credit of the Federal Government of Nigeria, with quarterly coupon payments to bondholders.
According to a recent report, NGX saw N11.23 billion in Federal Government of Nigeria bond listings which constituted FGN Savings Bonds with maturities ranging between 2024 and 2026.
Lagos State Government issued the only bond by a sub-sovereign entity with its N137.33 billion series 1V, 10-year 13 per cent, Fixed Rate Bonds due 2031 under its N500 billion debt issuance program.
