The Federal Government through the Debt Management Office, has officially launch a new investment window known as FGNSB as part of the initiative to mobilize funds to meet the nation`s development needs.
The new investment instrument which was conceived primarily for retail investors across the country was flagged off on Thursday in the commercial city of Kano, with plans in place to extend the launching to other parts of the country.
Abraham Nwankwo, director–general of the agency, disclosed that the President Buhari administration resolved to float the bond as a way of avoiding borrowing from undesirable local and international lending groups.
Addressing representatives of organized groups at the launch weekend in Kano, Nwankwo, who did not reveal the precise amount of money that the government intends raising through the bond, hinted that money to be generated from the issuance of the instrument, would be used to fund the current government spending deficits.
Giving an insight into the bond instrument, he explained that the instrument is being offer to the investing public through subscription at an interest rate determined by the DMO, and it tenor is between 2 and 3 years.
According to him, the instrument which is listed and to be traded on the Nigerian Stock Exchange Market, was conceived with the intention of providing opportunity for all categories of Nigerians, and foreigners, alike generate wealth building a saving culture.
He further explained that the minimum amount any interested investors can invest in the instrument ranges from N5,000 with addition in multiples of N1,000, subject to a maximum of N5 million.
Enumerating some of the benefits of the benefits accruable to those who will invest in the bond, the DMO, chief executive officer, noted that the instrument is a secure investment with no risk of default.
He added that in addition, the interest income would be paid quarterly directly into the bondholders account, pointing out that the bond can also be used as a collateral instrument for investors that might want to use it for loans by Banks.
Similarly, Nwankwo, stressed that the investors in the bond can sell it for cash in the secondary market before it mature, adding that it could also be used as saving towards marriage, retirement, school fees, and house projects.
Commenting on the bond, Abdullahi Kwaru, who represented, the leadership of the Kano Traders at the launch, commended the management of DMO for bring the investment opportunity to the people of the state.
Kwaru, a retired permanent secretary, described the investment window as good for people who are interested in investing in meeting immediate needs as well as those interested in building a secured future.
He encouraged members of the investing public in the state, particularly small and medium scale businessmen, to take advantage of the offer by the DMO, and buy into the investment.
In the same vein, Shamsudeen Umar, who represented the Academic Staff Union of Universities (ASUU), while also commending DMO for the initiative, described the initiative as a positive one which the union was in support.
Umar added such as initiative would prevent government from borrowing from undesirable sources, charging government to emphasis on borrowing from local sources in funding development, rather than foreign ones.
The highlight of the event was the presentation of promotional materials to representatives of the professional groups that attended the programme.
