FGN securities promotes national development - DMO

The Debt Management Office (DMO) says investment in Federal Government of Nigeria (FGN) securities is a way of contributing to national development.

The Director-General of the DMO, Patience Oniha, said this on Thursday at the FGN Securities Issuance Awareness Program in Benin, Edo State.

The awareness program is a collaborative effort between the DMO and CSL Stockbrokers Limited, the stockbroking firm for the Federal Government.

According to Oniha, who was represented by Elizabeth Ekpenyong, Head Strategic Programme DMO, the success of the awareness program so far encouraged the DMO to take it further across the country.

She said that investing in FGN Securities was the safest place for Nigerians to grow their investments.

“The safest place to grow your investment is through FGN Securities. They help to fast-track national development,” she said.

She said that the various FGN security instruments, which constitute the local component of the country’s public debt, also contribute to developing the local financial market and deepening financial inclusion.

“The federal government has various investment platforms like the FGN Bond, FGN Savings Bond, Treasury Bills, the Green Bond, the Sovereign Sukuk, and the Eurobond.

“One function of these FGN securities is to raise capital to finance deficits in the budget and also to raise funds to execute critical infrastructure projects.

“FGN Securities also contribute to the development of the domestic capital market, and they serve as a benchmark for other private institutions to issue their own securities.

“They are backed by the full faith and credit of the Federal Government of Nigeria and are default risk-free,” she said.

Mr. Abiodun Fagbulu, Managing Director, CSL Stockbrokers Limited, and FGN Securities are designed to accommodate all categories of Nigerians.

Fagbulu, who was represented by Mrs. Foluke Samuel, Lead Sales, Northern Region, CSL Stockbrokers Limited, said that government securities also enhanced the saving and investment opportunities of the populace.

He described FGN Securities as financial instruments issued by the DMO on behalf of the Federal Government.

“They are mostly fixed-income securities under which the government is obliged to make payments of a fixed amount on a fixed schedule, once or twice a year, and repay the principal amount on maturity.

“Investors in fixed-income securities are, therefore, guaranteed a constant and secure return on their investments,” he said.