The Debt Management Office(DMO) said, it raised N1.367 billion from the federal government Savings Bond auction held this month bringing the total value of the amount raised in the year to N8.824 billion.
Investors had put in N451.037 million in the two year Savings Bond which was raised at 8.075 per cent and N915.865 million in the three year paper raised at an interest rate of 9.075 per cent per annum.
The FGN Savings Bond which was introduced by the DMO is specifically designed for retail investors, and to encourage financial inclusion with investors being able to invest from N5,000. Last month, the DMO had raised N1.874 billion from the Savings bond.
In June, 701 retail investors had put N769.92 million in the two year Savings bond which was raised at 8.205 per cent while 621 investors had put N1.104 billion in the three year bond which was raised at 9.205 per cent.
A total of N1.106 billion had been raised in May this year with investors putting N748.45 million and N358.01 million in the three and two year bonds raised at 8.934 per cent and 7.934 per cent respectively.
The DMO had raised N4.47 billion through the FGN Savings Bond between January and April this year compared to N3.33 billion which it raised in the comparable period of 2021.
Last year, the total amount raised from the Savings Bond stood at N8.39 billion which is a significant increase compared to N3.63 billion raised in 2020. The Savings Bond auction did not hold for three months in 2020 due to the Covid-19 lockdown.
This year, the highest amount raised at the Savings Bond auction was in March when N2.15 billion had been raised. In April, investors’ interest had waned as N1.13 billion had been raised through the bond designed specifically for retail investors.
Director general of the DMO, Patience Oniha, had recently encouraged Nigerians to invest in the Savings Bond which she says pays more interest than banks in the country. According to her it is more profitable for Nigerians to invest their funds in the Federal Government of Nigeria (FGN) savings bonds than to save in banks.
Oniha, who was represented at the FGN Security Issuance awareness recently urged Nigerians to embrace investment in the various FGN Securities to enhance their earnings, saying “savings 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. 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.”
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