Since the debut issuance of N2.067billion, retail investors from across the six (6) geo-political zones and the diaspora have invested in the FGN Savings Bond with the Debt Management Office (DMO) raising over N13billion from 2-year and 3-year bond maturities as at July 2019, said Oscar Onyema, CEO, Nigerian Stock Exchange (NSE).
He noted this on Tuesday August 6 at the Retail Bond workshop organised by the NSE in collaboration with Debt Management Office (DMO) and Stanbic IBTC Stockbrokers.
The workshop aimed at promoting awareness on investing in Federal Government of Nigeria (FGN) securities with discussions on investment opportunities in FGN Bonds, trading of FGN securities on the NSE as well as addressing the issues around the purchase of FGN securities, payments of coupons, complaint resolution with a view to increasing retail participation in FGN securities and Debt Capital Market as a whole.
In March 2017, the Exchange in collaboration with the DMO launched the FGN Savings Bond having recognised the opportunity presented by the Nigerian demographic to diversify Government’s funding sources as well as enhance national savings culture.
“From our humble beginnings of listing and trading Federal Republic of Nigeria (FGN) Development Stocks in 1961, the Exchange is delighted to have revolutionised into a multi-asset hub with a N12.47trillion debt market providing investors access to a wide range of investment opportunities in the domestic and international capital market through the listing of sovereign, sub-national, corporates and supranational debt issues”, the NSE CEO said.
“Our partnership with the DMO towards creating investment opportunities for retail investors in the Debt Market dates to the launch of the NSE Retail Bond Market in 2012; when the DMO appointed a Government Stockbroker to provide liquidity in FGN bonds on our bourse.
“With the launch of the NSE Retail Bond Market, the Exchange sought to promote financial inclusion, while stimulating retail investor participation in the Nigerian Debt market. Prior to that time, investing in listed debt instruments had been dominated by institutional investors trading in wholesale denominations”, Onyema said.
Despite these teeming efforts, only about 3percent of Nigeria’s adult population currently participate in the Nigerian capital market; an indication that there is need for increased collaborative efforts in promoting higher levels of financial inclusion in Nigeria.
“In achieving our strategic vision to become the preferred Exchange hub in Africa, we will continue to pursue initiatives that seeks to increase domestic participation in capital market through increased access to investment solutions, as well as support government to achieve inclusive growth and sustainable development,” he added.
Iheanyi Nwachukwu
