Nigerian Govt considers sovereign savings bonds for retail investors

2 weeks ago

The Federal Government of Nigeria is set to launch its first-ever savings bonds into the domestic bond market to link savings and investments with national infrastructural development and economic growth.

The bonds, to be known as Federal Government of Nigeria Savings Bond, will be marketed like the ordinary equities on the stock market and will be available to all Nigerians, including those with the smallest amount of money to invest.

Sources said the Debt Management Office (DMO)- which oversees issuance of Federal Government bonds, has already reached a Memorandum of Understanding (MoU) with the stockbroking community on the marketing and distribution of the savings bond. The MoU provides a glimpse of the structure and framework for the savings bond.

A preliminary review of the framework for the savings bond indicates that the bond certificate could be used as guarantee and collaterals where such are required in transactions with the MDAs and private organisations.

Investors will also be able to purchase the savings bond in small units through physical offices and several online platforms. After the closure of the primary issue for the savings bond, retail investors will be able to buy and sell the bonds through the Nigerian Stock Exchange (NSE).


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