DMO laments low investments in FGN savings bond

The FGN savings bond introduced by the Federal Government to promote financial inclusion and attract small investors into the market has not attracted expected investments after all, indicating local investor apathy, a similar trend also noticeable at the equities market.

Speaking at a panel session on ‘Pathways to inclusive growth in Africa: Digital finance, financial literacy, inclusion and the democratisation of wealth’ at the 2018 African Securities Exchanges Association conference in Lagos, the Director-General of the Debt Management Office (DMO), Patience Oniha, said N10.5 billion has been made from the bonds while 13, 200 retail investors have so far invested in the fixed income instrument.

She said that despite huge money spent on television and radio advertisements for awareness, the level of patronage has been far below expectation, but expressed hope that more investors would take advantage of the securities to make money.

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Oniha recalled investor apathy that trailed the capital market since after the 2008 market crash, adding that there was a lot that needed to be done to attract local retail investors back to the market.

“Financial inclusion requires a lot of investor education, technology and financial literacy. We are looking to take some cues from some of the technologies deployed in Kenya where people can invest in the capital market through the use of mobile phones. The DMO will be glad to deploy that,” Oniha stated.

Continuing, she said, “there was a need to build investors confidence in the market by being transparent and improving corporate governance. We also need to do a lot in terms of investor education using the media and other platforms. Any firm interested in collaborating with us to drive this goal is welcome.”

The Managing Director/Chief Executive Officer, Access Bank Plc, Herbert Wigwe, emphasised the need to leverage technology to reach out to people at the bottom of the value chain, pointing out that time ought to be taken to educate investors and potential investors.

He said, “We should also take the investment education to students in secondary schools and universities, this will also increase youth participation and investment in the capital market

“We also need to work on our level of sophistication, financial literacy and financial inclusion. Once people are more informed about these processes, investment will increase.”