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| Nigerians grow their economy |
One of the hardest habit to cultivate especially in a depressed economy is saving. This is more pronounced in people with low income thus they are often left out of investment opportunities. But with the Nigeria economy going south, the Nigeria Debt Management Office, DMO is recruiting every determined saver that wish to become an investor to invest in the FGN saving Bond. FGNSB is targeted at retail investors and lower income earners to encourage savings and earn more income compared to bank savings accounts. Bo Sanchez said the bond is “where the bank puts their money”.
With the FGN saving bond opening today, March 13, 2017, every small saver can transmute into an investor with as little as N5,000. According to the DM office, the FGN aims to raise N50 billion from this first issuance of the bond. Additional bonds will be issued every first week of the month starting from April 2017. The good news about this fund is that it offers attractive Return on Investment and highly liquid because it can be traded on the Nigeria Stock Exchange at any time.
The following Additional information is from ARM Securities website.
Benefits:
- It is 100% safe with guaranteed returns
- Incomes earned from the instrument are tax exempt
- It provides steady income and a more competitive interest rate
- The FGN Savings Bond Certificate can be used as collateral for loan
- Good for savings towards retirement, marriage, school fees, house projects, etc.
- It enables individuals to enjoy those benefits which accrue to high Networth investors in the capital market.
Features:
1. FGN Savings Bond (FGNSB) will be issued on March 13, 2017.
2. Interested parties (individuals and small savers) have five working days to buy the bond via their stockbrokers with allotment notification sent a week after.
3. The minimum investment will be N5,000 only (additional in multiples of N1,000) and maximum N50 million.
4. The tenor will be two – three years. Subsequent issuances will be monthly with a quarterly payment of interest to investors.
5. FGNSBs can be traded through Stock Broking firms just like stocks.
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