TheCable

The Debt Management Office (DMO), says investing in the various securities provided by the federal government of Nigeria (FGN) is an act of patriotism.

Patience Oniha, director-general, DMO, said this at the FGN securities issuance awareness programme in Yola on Wednesday.

The programme was jointly organised by DMO and CSL Stockbrokers Limited.

Oniha, represented by Isiaku Muhammed, the team leader, project unit, DMO; said by investing in FGN securities, citizens are contributing to nation-building and assisting the government to meet its financial obligations.

She noted that the organisation was a government agency saddled with the responsibility of managing the nation’s public debt portfolio.

“In carrying out that responsibility, the DMO also has the responsibility of issuing FGN securities which offer good investment opportunities for the citizenry,” Oniha said.

“By investing in those securities, citizens are contributing to nation-building.

“Apart from the advantages that investors get, it is also an act of patriotism. It is a way of contributing your quota to the development of Nigeria.”

Oniha also said securities are awards of indebtedness, adding that they were risk-free and secure.

“The federal government, through the DMO, has different ways of generating funds, either from the international market or from the domestic market, and it does that either by raising loans or issuing securities,” the DMO boss added.

“In issuing its securities, the government gives papers to investors as an indication of indebtedness and collects monies from them which it uses for its development agenda.

“Investors are equally rewarded; they receive instalment payments of interests, coupons for rental payment, either bi-annually or quarterly.”

She further listed the existing securities instruments as FGN bond, FGN savings bond, FGN sukuk, the green bond, and treasury bills.

According to her some of these instruments are not available for retail or general investors, adding that “some of them have certain biases”.

“The aim of this awareness is to bring in many more investors into the investment net of the federal government. FGN securities are relatively safer than any other security,” she said.

“They also establish the benchmark for all other issuers of security instruments in the country, be it sub-national, municipal or corporate bodies.”

On her part, Foluke Samuel, head of operations, CSL Stockbrokers Limited, said government securities were safe and secure.

She also assured that they are backed by full faith and credit of the federal government of Nigeria.

“It does not matter who is heading at any particular time, so long as the country exists your investment remains secure,” she said.

Recently, the agency reopened bonds valued between N70 billion to N80 billion belonging to the federal government on September 19, 2022.