The Debt Management Office (DMO) says it is more profitable for Nigerians to invest their funds in the Federal Government of Nigeria (FGN) savings bonds than to save in banks.
This was made known by the Director-General of DMO, Patience Oniha, at the FGN Security Issuance awareness programme jointly organized by DMO and the stockbroking firm of FG, CSL Stockbrokers Limited, on Tuesday in Ibadan.
Oniha, who was 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.
Oniha said, “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.’’
DMO Says Investment In FGN Savings Bond More Profitable Than Saving In Banks
She 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.
The DMO boss said, “There is the need to challenge the banks to improve on their service delivery.’’
She said that the FGN savings bond is specifically designed for retail investors, and to encourage financial inclusion.
On the country’s disturbing high debt profile, Oniha 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.
Interest rates on FGN securities higher than that of banks
Speaking at the occasion, Mr Fortune Ibe of CSL Stockbrokers Limited, said that the investment in FGN Securities was an additional way for Nigerians to make money.
Ibe said, “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.’’