According to the Debt Management Office (DMO), keeping money in banks is not as profitable for Nigerians than investing in savings bonds issued by the Federal Government of Nigeria (FGN).
Patience Oniha, the Director-General of DMO made this revelation on Tuesday, in Ibadan at the FGN Securities Issuance awareness programme.
According to the News Agency of Nigeria (NAN), DMO and the FG’s stockbroking subsidiary, CSL Stockbrokers Limited, jointly organized the awareness event.
Mr. Monday Usiade, the Director of the DMO’s Market Development Department, spoke on behalf of Oniha and urged Nigerians to participate in the various FGN Securities in order to increase their income.
“Saving is a culture we must all imbibe, and the FGN savings bond has come to help Nigerians save.
“The driving force is to encourage us to save in a secure environment. The Federal Government cannot default on a loan in its own currency,’’ she said.
According to her, several FGN assets, including Treasury Bills, FGN Bonds, FGN Savings Bonds, Euro Bonds, Green Bonds, and Sovereign Sukuk, were already in competition with banks.
“There is the need to challenge the banks to improve on their service delivery,’’ she said.
She claims that the FGN savings bond is made especially for regular investors and is intended to promote financial inclusion.
According to her, government borrowing need not be an issue as long as it is used to fund infrastructure improvements and investments in the economy’s productive sector.
Earlier, Mr. Fortune Ibe of CSL Stockbrokers Limited claimed that buying FGN Securities was another avenue for Nigerians to increase their income.
Ibe stated that the program’s goal was to raise investor awareness among retail investors.
“The Federal Government is telling Nigerians that they can borrow their money for infrastructure and they will get interest rate on it.
“The interest rates on FGN securities is higher than what the banks will give you.
“With as little as N5,000, Nigerians can now invest in FGN savings bond. It is an avenue through which the government raises funds to develop infrastructure.
“It also contributes to the development of the financial market, attracts foreign investors into the financial market and enhances savings and investment opportunities of the populace,’’ he said.