The Managing Director of CSL Stockbrokers Limited (a subsidiary of FCMB Group Plc), Mr. Abiodun Fagbulu, has advised Nigerians to invest more in the various federal government securities as they offer higher returns on investment. He added that they are also risk-free, backed by full faith and credit of the Federal Government of Nigeria. 

Mr. Fagbulu said this at an awareness programme organised by the Debt Management Office (DMO) in Ibadan to educate retail investors on the benefits of investing in Federal Government Securities.  

In his presentation, he stated that: 

‘’The federal government securities, such as FGN Bond, FGN Savings Bond, the Sovereign Sukuk, Treasury Bills, the Green Bond and Eurobond, offer so many benefits to Nigerians, including retail, private and institutional investors. With a minimum subscription of N5,000 and multiples of N1000, they offer convenient and stable sources of income. Returns on investment are guaranteed, paid every three or six months, and the principal is paid at the end of each tenor. The securities are also tradable on the stock exchange and contribute to the development of the capital market. They can be used as collateral to obtain loans from banks and other financial institutions, thereby enhancing the savings and investment opportunities of the populace, which in turn promote financial inclusion’’. 

He added that: 

‘’The securities also enable the government to bridge its funding gap and serve as a platform to raise funds to finance developmental projects for the benefit of the country and people. They also attract foreign investors into the domestic financial market to refinance maturing domestic debt and to diversify sources of funding for the Federal Government. CSL Securities Limited will continue to support Nigerians and the government with professional and value-added solutions that yield the best investment returns and facilitate sustainable economic development’’. 

Also speaking, the Director, Market Development Department, Debt Management Office, Mr. Monday Usiade, said apart from raising funds to finance government projects, the federal government securities also offer attractive investment opportunities to Nigerians.

Mr. Usiade, who represented the Director-General of the Debt Management Office, Ms. Patience Oniha, explained that: 

‘’The FGN Bond is the flagship product, and it is offered every month, while returns are paid every six months. It also offers a medium to long-term investment opportunity, from five to seven, 10, 20 and 30 years. There is also the FGN Savings Bond designed with retail investors in mind. It is issued monthly, with a minimum subscription of N5,000 and multiples of N1000, subject to a maximum of N50m. The Eurobond is issued in dollars and designed to provide exposure to foreign investment that stayed in the country. Investing in Eurobond helps to boost the nation’s external reserves’’. 

The Director also spoke on the importance and benefit of the Sovereign Sukuk product, adding that funds realised from this source have been invested in the construction of several roads spread across the country. For instance, in 2020, the DMO released N162.6 billion, the amount raised from Sukuk and dedicated to roads projects, to the Federal Ministry of Works for this purpose. 

Participants at the awareness programme commended the DMO, CSL Stockbrokers and other stakeholders for organising the programme, which is the fourth in the series. They expressed optimism that this will help Nigerians gain a full understanding of investment opportunities offered by the Federal Government. 

CSL Stockbrokers, the stockbroking subsidiary of FCMB Group, provides individual, corporate and government clients with high-quality professional and personalised financial and investment services. The company is rated among the top ten in the stockbroking segment of the Nigerian capital market, having facilitated various high-value and volume brokerage transactions since its establishment in 1977. In addition, CSL has continued to play notable roles in developing the Nigerian capital market by arranging public issues and private placements of equity and debt of leading Nigerian companies.