Following the Central Bank of Nigeria’s (CBN’s) recent move to restrict individuals, local corporate and non-bank financial institutions from participating in the primary and secondary markets for Open Market Operation (OMO) securities, the Debt Management Office (DMO) has clarified that the restriction is limited to OMO Bills and does not apply to securities issued by the Federal government (FGN).
It assures the general public that there is no restriction on persons who can invest in FGN Securities.
The CBN had earlier sent out the Circular to All Banks referenced FMD/DIR/GEN/OGC/14/009 dated October 23, 2019, on Eligible Investors in Federal Government of Nigeria Securities, which excluded some investor categories from investing in OMO Bills,
The DMO therefore clarified that Open Market Operation Bills (OMO Bills) are securities issued by the CBN for monetary management purposes.
“Thus, all investors, local and foreign, including individuals, co-operative societies, social clubs, town associations, local corporates, fund/asset managers, pension funds, insurance companies, banks and others are eligible to invest in FGN Securities,” the notice read in part.
The DMO offers a wide range of FGN Securities in various tenors to meet the needs of its growing and diverse investor base.
The securities whose tenors currently range from 91 Days to 30 Years are: Nigerian Treasury Bills (NTB), Federal Government of Nigeria Bonds (FGN Bonds), Federal Government of Nigeria Savings Bond (FGNSB), Sukuk and Green Bonds.