Wednesday, October 5, 2022

Investing in FG’s securities has no risk, profitable: DMO

The Debt Management Office (DMO) says Nigerians should invest in the federal government’s securities.

• May 31, 2022
DMO DG Patience Oniha
DMO DG, Patience Oniha

The Debt Management Office (DMO) says Nigerians should invest in the federal government’s securities.

According to the DMO, they are profitable and risk-free.

In an interview on Tuesday, the director-general of DMO, Patience Oniha, said the securities offered attractive investment opportunities, apart from raising funds to finance government projects.

“They are backed by full faith and credit of the federal government of Nigeria, and are default risk-free,” she said.

Ms Oniha noted that the federal government, through the DMO, issues the bonds and makes periodic interest payments to the investors. At the same time, the principal is paid at the end of each tenor.

“The federal government has various investment platforms like the FGN Bond, FGN Savings Bond, Treasury Bills, the Green Bond, the Sovereign Sukuk and Eurobond,” she added.

Ms Oniha explained that the government’s ecurities also contributed to developing the domestic capital market, adding that they served as a benchmark for other private institutions to issue their securities.

“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,” stated Ms Oniha. “You can use them as collateral to obtain loans from banks and other financial institutions, and they help in diversification of investment portfolio.”

She further mentioned that the federal government’s bond “is the flagship” and the longest of the existing federal government’s securities.

“It offers medium-term to long term investments, from five years to seven years, to 10 years, 20 years and 30 years. It is offered every month, with a minimum subscription of N50 million, and in multiples of N1000 after that, and coupon payments are made every six months,” she noted.

The federal government’s savings bond is issued monthly with a minimum subscription of N5,000 and in multiples of N1000, subject to a maximum of N50 million.

The DMO boss further stated that the Eurobond was issued in dollars and designed to provide exposure to foreign investment that stayed in the country.

Ms Oniha described the Sovereign Sukuk as Sharia-compliant security that represents the owner’s interests in an asset or pull of assets.


We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette


WHO confirms 29 dead in 63 confirmed Ebola cases in Uganda 

WHO is working diligently in Uganda to support the government in responding to an Ebola outbreak in four districts.

Adetunji Adeleye


Amotekun impounds 80 ‘Okadas’ in Ondo for violating restriction order

The seizure came after the governor Rotimi Akeredolu-led state government ordered a ban on the movement of commercial motorcyclists at night.

Festus Keyamo and Bola Tinubu cycling

Heading 3

Tinubu loves cycling; he’s strongest presidential candidate: Festus Keyamo

“People who are close to him, they know that he’s an avid cyclist; he does that all the time. It’s his routine.”

TCN and Sule Abdulaziz

Heading 1

FG to add 817 megawatts to national grid: TCN

The project will add five transmission substations, 143 kilometers of 330 Kilo Volts (KVs) and 81 kilometers of 132 KV transmission lines to Abuja.

National Central Bureau and Vice President, Interpol Africa, Garba Umar and NDLEA Chairman, Buba Marwa


NDLEA signs MoU with Interpol to share criminals data

Mr Marwa said drug business was international in scope.

Nigerian trading floor


Investors lose N227 billion after selloffs in Tier-1 banks stocks

The All-Share Index (ASI) also lost 43.04 points or 0.09 per cent to close at 48,836.70 compared with 48,879.74 posted on Tuesday.