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From Uche Usim, Abuja
The Federal Government realised a total of N45.135 billion from retail investors in the bond market (FGN savings bond) in 2022.
This reflects strategic efforts by the Debt Management Office (DMO) to stimulate activities in the capital market.
Director General of the DMO, Ms. Patience Oniha, made the disclosure at the engagement with Distribution Agents and Market Stakeholders for Final Demonstration of the FGN Securities Subscription Portal, in Lagos, on Tuesday.
According to her, “Since its introduction in March 2017, the FGNSB has performed relatively well. Total subscription from 2017 to December 2022 was N45.135 billion with investors coming from the six geo-political zones and the Federal Capital Territory.”
The DMO boss explained that the portal would be launched in about about weeks, in collaboration with the Central Securities Clearing System (CSCS).
She noted that the FGBSB had great capabilities to attract more retail investors and driving the secondary bond market.
She said: “The DMO believes that the product has more potential than what has been achieved so far and has for now, identified two ways to achieve much higher volumes and numbers of investors.
“In 2022 we embarked on investor sensitization programmes across a number of cities in Nigeria, this strategy proved successful as total subscription almost doubled from N8.396 billion in 2021 to N16.589 billion in 2022.
“Given this outcome, the DMO plans more of such sensitization, as well as wider publicity.”
Ms. Oniha said that DMO would work closely with the CSCS to deploy technology as a major strategy for attracting more investors to the bond market.
She added, “The other strategy is to deploy technology to the process to make the subscription fast, easy and overall, more convenient.
“The CSCS has developed a Portal through which investors can subscribe for FGNSB.
“The DMO has worked with the CSCS to develop the Portal and it has been tested with Distribution agents for the FGNSB.
“The presentation of the Portal is to expose it to a wider group of stakeholders to acquaint you with the portal and obtain your comments,”p to enable the DMO and CSCS.”
According to the DG, Information and Communications Technology (ICT) has provided very convenient means of doing business and that as such the DMO would leverage on the portal to attract move investors to the securities market.
She explained that young Nigerians would be particularly targeted in that regard, as according to her, the market must move with latest smart technologies to remain relevant and attractive.
In his remarks,, the Managing Director/Chief Executive Officer of Central Securities Clearing System (CSCS) Mr. Haruna Jalo-Waziri, challenged brokerage firms to set up Apps for their organisations, as that would even further attract young investors to the capital market.
A presentation on the FGNSB’s journey so far, indicated that subscribers’ base had hit 31, 675 as at end of 2022.
