The Nigerian bond market is worth about N7.2 trillion, an expert in bonds trading, Mr. Malcolm Gilroy, has disclosed.
Gilroy, who is the Global Head of Sales and Trading at Dunn Loren Merrified Limited (DLM), an investment bank in Nigeria, made this disclosure while speaking at the monthly of the Capital Market Correspondents Association of Nigeria (CAMCAN) sponsored by DLM in Lagos.
According to him, the bonds were raised by the Federal Government, state governments and corporate bodies.
Giving a breakdown of the bonds, he said the Debt Management Office(DMO), which raised bonds on behalf of the Federal Government, accounted for about N3.5trillion; Asset Management Corporation of Nigeria (AMCON) accounted for N3.2 trillion, while state governments and other corporate bodies accounted for about N500 billion.
Gilroy said the market had the potential to grow more, saying that as interest rates decline, more corporates will access the market in 2013.
Generally, he said the inclusion of Nigeria in the JP Morgan Government Bond Index would continue to attract international investors into the country.
Nigeria had in October 1, joined the JP Morgan Government Bond Index-Emerging Markets (GBI-EMs) with the listing of FGN’s bond, becoming the second African country after South Africa to be included in the widely-followed index.
He said the market had witnessed increased flow from offshore investors since the announcement last August, projecting an estimated inflow of $1.5 billion into the country before the end of the year.
Also speaking at the forum, Vice-President, Investment Research, DLM, Mr. Tola Odukoya, said the bond market would be very active next year, adding that the company would continue to play a major role in packaging bonds for governments and corporate bodies.
Meanwhile, trading at the stock market continued to rally as the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.34 per cent to close at 26,883.76. The market capitalisation of equities added N29 billion to be at N8.567 trillion.