The Federal Government of Nigeria Savings Bond, which opened for subscription exclusively on the Nigeria Stock Exchange on Monday, will boost financial inclusion, the Executive Director, Capital Market Division of NSE, Haruna Jalo-Waziri, has said.
He said this while commenting on the planned launch of the sovereign savings bond, which commenced on March 13 and targeted at retail investors. To ensure the offer reaches the last mile subscribers, the Debt Management Office has accredited 87 stockbroking firms of the NSE to market and distribute the savings bond.
The retail bond, issued by the DMO, would be offered monthly in tenors of two and three years, with quarterly payment of interest to investors. The minimum subscription amount is N5, 000 with addition in multiples of N1,000, subject to a maximum of N50, 000,000.
Backed by the full faith and credit of the Federal Government, the bond, among several objectives, was aimed to deepen the national savings culture, provide opportunity to all citizens irrespective of income level to contribute to national development, enable all citizens to participate in and benefit from the favourable returns available in the capital market and more importantly diversify funding sources for the government.