The Debt Management Office (DMO) has said retail investors have invested N45.1 billion in the Federal Government of Nigeria (FGN Savings Bond) as of the end of 2022.
The Director-General of the DMO, Ms. Patience Oniha, disclosed this at the engagement with Distribution Agents and Market Stakeholders for the Final Demonstration of the FGN Securities Subscription Portal.
Oniha said: “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 (6) geo-political zones and the Federal Capital Territory.”
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 the subscriber base had hit 31, 675 as at end of 2022.
The analysis of the developments in the sub-sector also showed a higher appetite for the 3-year bond, as against the 2-year tenured bond.
…Why FG borrowed N2.13trn in 2 months
The DMO also disclosed that the federal government borrowed N2.13 trillion in the first two months of the year.
The DMO in a statement yesterday said the N2.13 trillion borrowing comprises N1 trillion to partly finance the budget 2023 deficit of N7.043 trillion, and N1.13 trillion to pay off debts that matured during the period.
Reacting to the report that suggested that at this rate of borrowing, the government may exceed its domestic deficit funding requirement of N7.043 trillion in 2023, the DMO clarified that the domestic issuance programme is designed not only to provide funds to finance the Budget Deficit but to also refinance the FGN’s maturing obligations during the fiscal year.
The DMO said: “Thus, while a total of N2.129 trillion has been raised in January and February from issuances of FGN Bonds, Nigerian Treasury Bills and FGN Savings Bond, only N1 trillion has been deployed for deficit financing, representing 14.2% of the total requirement of N7.043 trillion for the year.”
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