Up till now, you have to be among the high-net-worth Nigerians to be a player in the capital market and earn fantastic returns on your investment. Considering the huge amount needed to invest in bonds, retail investors have been shut out for a very long time.
However, a window of opportunity for Nigerians to harness the huge benefits derivable from retail bonds has been made possible by the FGN Savings Bond. While the savings bond will help government mobilize domestic resources for deployment into important capital projects to reflate the economy, the savings bond also as its benefit for the common man.
To mention but a few, here are some benefits of the introduction of the FGN Savings Bond to the Nigerian Economy and the Nigerian Capital Market:
- It would help increase the savings rate of a larger proportion of Nigerians
- It provides retirees and people wanting to save a more attractive rate of return much higher than bank saving rates
- It creates the opportunity to have new (retail) investors invest in the Nigerian Capital Market.
- It leads to more liquidity in the Capital market
- It leads to lower borrowing costs by the government and possibly lower interest rates as a result of the bigger pool of bond buyers that will erupt.
- It also means more business for brokers who are currently undergoing tough conditions due to low trading volume on the NSE as the number of investors escalates.
To ensure success in this effort, as this might be a model for other African countries to follow. InfoWARE introduced the FGN Savings Bond subscription system for its customers to ensure maximum reach and scale at no additional cost. Combined with the InfoWARE integrated payment gate, the subscription process should be painless and allow reach into all corners of the country and also Nigerians in Diaspora
