The Debt Management Office, DMO, in Nigeria has launched a new investment opportunity for low income earners in Kano State to help develop the nation’s economy.
The new tax free financial instrument called Federal government Savings Bond, FGNSB, is being issued monthly with a tenor of two to three years.
The Director General of DMO, Dr. Abraham Nwankwo at the unveiling/Sensitization programme of the instrument in Kano state, said the FGNSB will enable low income earners contribute to the development of the economy and equally reap from it.
“ When FGN uses proceeds from the bond money on infrastructural development like roads, water and electricity, the people benefit from them by using them, At the end of the tenor of the bond they still get their money and interest back”
“You can subscribe as low as N5,000.00. It is a bond made for the ordinary people, so that they can participate like the Way the big ones participate in the big bond. The traders, the Taxi drivers, farmers, vulcanizes, hair dressers and barbers among others, we want them to participate in the capital market, which is a core part of president Buhari’s agenda,” Dr Nwankwo explained.
He stated that low income earners now have opportunity to make savings by investing in the FGNSB through lending to the FGN at a reasonable rate with the assurance that at the end of the day they get back their capital because it is 100 percent secured as there is no risk involved.
He said the new financial instrument will enhance all inclusive growth by bridging the gap between growth and development in the economy.
“The Federal government want everybody to participate in the development of the economy. In the past we have been having growth without development. The cardinal point of this administration is about all inclusive growth foe development”, re-emphasized the DMO boss
He said the development is being strategically and aggressively communicated to the grassroots through various means of communication especially radio.
Offer for subscription
The Director, Portfolio Management Department of DMO, Dr. Oladele Afolabi said the bond is offered by the government to the public through offer for subscription at an interest rate to be announced by DMO.
The event witnessed participants from various organizations and groups. One of the representatives of the groups, Abubakar Usman from Gidonya foundation commended the development, pointing out that it is a rear opportunity for the grassroots to participate in the bond market with a minimum amount of money which had never been before.
The unveiling and sensitization programme will be carried out across the federation with the next to take place in Onitsha in Anambara state, South Eastern Nigeria.