Investment In FGN Savings Bond Below Expectation – DMO

 Investment In FGN Savings Bond Below Expectation – DMO

The Director-General, Debt Management Office, Patience Oniha, says the investment so far recorded in the Federal Government Savings bonds is below expectation.

Oniha, revealed this while speaking during a panel session on Pathways to inclusive growth in Africa: Digital finance, financial literacy, inclusion and the democratization of wealth at the 2018 African Securities Exchanges Association conference in Lagos.

She said the FGN savings bond was introduced to promote financial inclusion and attract small investors into the market.

According to her, N10.5bn has been made from the bonds as the DMO was able to attract 13,200 retail investors to invest in the securities.

She said more investors were expected as the DMO spent a lot of money on television and radio advertisements and awareness creation.

Oniha noted that a lot of investors pulled out of the capital market after the 2008 market crash, adding that there was a lot that was needed to be done to attract them back to the market.

She said, “Financial inclusion requires a lot of investor education, technology and financial literacy.

“We are looking to take some cues from some of the technologies deployed in Kenya where people can invest in the capital market through the use of mobile phones. The DMO will be glad to deploy that.”

She added that there was a need to build investors confidence in the market by being transparent and improving corporate governance.

“We also need to do a lot in terms of investor education using the media and other platforms. Any firm interested in collaborating with us to drive this goal is welcome,” Oniha stated.

The Managing Director/Chief Executive Officer, Access Bank Plc, Herbert Wigwe, emphasized the need to leverage technology to reach out to people at the bottom of the value chain.

He noted that time ought to be taken to educate investors and potential investors.

He said, “We should also take the investment education to students in secondary schools and universities, this will also increase youth participation and investment in the capital market

“We also need to work on our level of sophistication, financial literacy and financial inclusion. Once people are more informed about these processes, investment will increase.”

Ayomide Oyewole

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