The Director General of the Debt Management Office, DMO Patience Oniha has appealed to Nigerians to invest in federal government securities, saying they are contributing to nation-building by doing so.
She described government securities as risk-free, safe and secure for the investing public.
Such security she stated includes FGN savings bond, FGN Sukuk, the green bond, and treasury bills.
The DMO boss made the call barely 48 hours after President Muhammadu Buhari wrote the Nigerian Senate to approve the issuance of promissory notes, PM totaling over N402 billion by his government.
Promissory Note is a signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand. Government at all levels use PM as a debt financing instrument.
Oniha who spoke at the Federal government security issuance awareness programme in Yola, Adamawa state, said investing in government security instruments is an act of patriotism.
She was represented at the event by Isiaku Muhammed, the team leader, of the project unit.
According to her, “In carrying out that responsibility, the DMO also has the responsibility of issuing FGN securities which offer good investment opportunities for the citizenry.
“By investing in those securities, citizens are contributing to nation-building.
“Apart from the advantages that investors get, it is also an act of patriotism. It is a way of contributing your quota to the development of Nigeria.
“The federal government, through the DMO, has different ways of generating funds, either from the international market or from the domestic market, and it does that either by raising loans or issuing securities.
“In issuing its securities, the government gives papers to investors as an indication of indebtedness and collects monies from them which it uses for its development agenda.
“Investors are equally rewarded; they receive instalment payments of interests, coupons for rental payment, either bi-annually or quarterly.”
On Tuesday, President Buhari in separate letters to the Senate sought approval for the issuance of promissory notes totaling over N402bn to three states.
The breakdown of the request shows that N375 billion is meant for settling outstanding claims owed to various exporters for the Export Expansion Scheme, EES.
It also includes N6.7 billion and N2.7 billion for Kebbi and Taraba state governments, respectively for the construction of federal roads in their states.
The president also sought the Senate’s approval for the issuance of N18.62 billion for Kebbi State, amongst others.
