DMO, CSL woo retail investors in Lagos

The Debt Management Office (DMO) on Thursday urged investors to take advantage of the FGN saving bonds offered at a minimum.

The DMO made the call during the Federal Government of Nigeria (FGN) Securities Awareness Program held in Lagos.

Supreme News reports that the awareness program was organized in collaboration with CSL Stockbrokers Limited, the stockbroking firm for the Federal Government.

Supreme News reports that the awareness program, which started in Lagos in March 2022, has also been taken to Enugu, Ibadan, Kano, Yola, Umuahuia, Gombe, Osogbo, Port Harcourt, and Benin.

Patience Oniha, Director-General of the DMO, said that the FGN Savings Bond was and structured to satisfy retail investors, who can invest as little as N5,000.

Oniha, who was represented by Mr Oladele Afolabi, Director, Portfolio Management, DMO, said that the saving bonds was risk-free and fully backed by the Federal Government.

She said that there was a need to invest in instruments with good earnings returns and high standing as a means to contribute to the development of the country.

She added that the event presented a platform to better understand investment instruments and provide guidance on how to invest.

According to the Director-General, investment in FGN Savings Bonds is not just for merchant banks and stockbrokers, but also for individuals.

“It is very important to consider the advantages of saving, and I use this medium to advise against investing in Ponzi schemes that have huge risks and lack backing.

“While there are other saving instruments the Federal Government provides, this particular one affords the opportunity to retail or small investors to take advantage of.

“This also means the government is standing strongly behind the instruments, irrespective of the minimum amount of $5,000, and is as strong as other bonds running into billions.

“The FGN Savings Bonds can also be used as collateral to access credit facilities at other banks,” she said.

Mr. Richard Akinmoladun, Head, Property Trading, CSL Stockbrokers Limited, said the event was to create awareness for retail investors about the special quality of bonds.

Akinmoladun said that the program would also help sensitize prospective investors about investing in securities.

He said that investment in these bonds would provide funding support for the Federal Government, which is needed to drive some infrastructural development in the country.

According to him, the purpose of FGN Securities is to raise capital to finance deficits in the FGN’s budget.

“It also helps to raise funds to execute critical infrastructural projects and contribute to the development of the domestic financial markets.

“It also enhances the savings and investment opportunities of the populace, thereby promoting financial inclusion and attracting foreign investors into the domestic financial markets,” he said.

He listed the benefits of these investments as including safety, visible collateral, diversification of the investment portfolio, steady income, and liquidity.

“The FGN Savings Bond is a fixed-income security that is targeted at retail investors with guaranteed quarterly interest payments.

“A large chunk of assets in the portfolio of pension asset managers is invested in FGN bonds due to the safety that the instruments provide.

“It is important to state that the interest rates, rental income, and principal repayments on FGN Securities would be received in full and on time,” he said.

Mrs. Ifeoma Ukunna, Head, Retail Business, CSL, urged investors to diversify their asset classes to guard against the risks attached to investment portfolios.

She stated that the advantage of the FGN Savings Bonds was their stable and fantastic yield with very low risks.

She added that the bond has a specific objective to guide Nigerians against falling into investing in Ponzi schemes.

“The FGN saving bonds yield a fantastic return with very low risk, but the returns outweigh some of the instruments in the asset classes.

“If your rented property and other investment instruments are not yielding good incomes, the FGN savings bond is a good way to keep afloat.

“Individuals looking to invest should note that all banks are investment agents for the FGN Savings Bonds, and they can also take advantage of brokers online platforms to begin the process,” she said.