FGN Savings Bond Reaches N5bn In Five Months – NGX

FGN Bond For Jan. 2021 Oversubscribed

The total allotments for FGN Savings Bonds have reached N5.06 billion in the first five months of 2023, according to data from Nigerian Exchange Limited.

Jude Chiemeka, the divisional head of capital markets at NGX, said this on Thursday at the NGX Savings Bond webinar 2023, which was sponsored by the Debt Management Office and CSL Stockbrokers and organized in partnership with the fintech platform Optimus by Afrinvest.

Chiemeka said, “FGN Savings Bonds market has remained on the upward trend in the current year (from January to May) with allotments at an average of N1.01 bn (Total allotments from January – May stands at N5.06 billion). However, there remains an opportunity for further participation by the investing public.

“As inflation remains unrelentingly on the upward trajectory (Now at 22.22 per cent as of May) the yields on FGN Savings Bond which are in double digits offer an opportunity for investors to taper negative real interest rates.”

During the webinar, the Director, Market Development Department, DMO, Monday Usiade, who was seated in for the Director-General, DMO, Ms. Patience Oniha, stated that FG had successfully raised N50.2bn from around 35,000 subscribers.

The DG said that in order to guarantee that retail investors receive returns that are similar, the DMO prices its savings bonds using the benchmark yield curve for FGN bonds.

The goal of the webinar, which was organized by the NGX, was to increase investor understanding of the advantages of FGN Savings Bonds, particularly among retail investors. This would promote investment participation and advance financial inclusion in the nation.

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