DMO Takes Federal Savings Bond Campaign to Grassroots
The Debt Management Office (DMO) has taken the drive to have Nigerians invest in the Federal Government Savings Bond (FSB) to the grassroots in the Federal Capital Territory, Abuja. A statement from the agency quoted the Director, Portfolio Management Department, DMO, Mr. Oladele Afolabi, as telling traders at the Gudu District Market on Tuesday that the federal government was committed to promoting a good savings culture amongst Nigerians.
That commitment, he said, led to the grassroots campaign to encourage people to invest in the FSB.
â€œWe are here so that you (traders) can see us and know that what the federal government is offering is real. Government wants you to save and earn good interest on what you save. Saving with your government is the best way to save,â€ Afolabi told the audience.
In a presentation, Mrs. Bose Olafisoye of DMO told the traders that the FSB belongs to the people, therefore, the decision of the DMO to engage with ordinary Nigerians on the streets, in the markets as well as Churches and Mosques.
Speaking at the event also, chairman of the Gudu Amalgamated Traders Association, Chief Bond Nnamani, urged his members to seize the opportunity offered by the DMO to have additional savings especially one guaranteed by the full faith of the federal government.
The Gudu market outing is the first of many other awareness initiatives that the DMO will be undertaking to have Nigerians invest in the savings bond.
The federal government issues the savings bond every month in tenors of two and three years with a minimum subscription of N5, 000. Interest on the savings bond is tax free.
Speaking on how to increase investorsâ€™ patronage, analysts at FSDH Research had said the DMO and the stockbrokers can organise investorsâ€™ road shows in various cities and schools across the country.
â€œThis will be an avenue to directly engage retail investors on the need for them to hold the bonds in their investment portfolio. The DMO can work with some identified large corporate organisations that have large number of employees to encourage their employees to invest in the Bonds on a monthly basis. The DMO can also work with government agencies to encourage civil servants to invest in the bond,â€ the analysts stated.
According to them, these strategies should be able to attract a minimum of one million subscribers on a monthly basis.
â€œIf this is achieved and the monthly subscription amount increases, the overall weighted average interest rate on the FGN debt will drop,â€ they said.