Economy
Details of How to Purchase/Subscribe FGN Savings Bond
By Dipo Olowookere
The FGN savings bond was created by the federal government a few years ago to meet the investment demands of low-income earners in the country.
Before the introduction of the financial asset, Nigerians had the opportunity to invest in treasury bills for as low as N10,000, but the Central Bank of Nigeria (CBN), which sells T-bills on behalf the Debt Management Office (DMO), raised the minimum subscription for the bills to N50 million.
This development made nearly it impossible for low-income earners to invest in government securities and the sovereign bonds available also required high minimum subscription to partake in them.
This made the debt office to design the FGN savings bond to attract retail investors, who wish to earn steady revenue by lending money to the government to carry out some critical infrastructure in the country. The minimum subscription for this was pegged at N5,000.
Since its introduction, investors have been embracing the papers and in the first week of every month, the DMO auctions the bonds in two different maturities; 2-year and 3-year.
For the month of December 2020, the offer opened on Monday, December 7 and will close on Friday, December 11.
However, not many people know how to go about purchasing this bond targeted at retail investors with a maximum subscription of N50 million. This is what this article hopes to help readers with.
To buy the FGN savings bond, an investor needs to open a stockbroker’s account and this should be with the notable names. In fact, not all brokerage firms are accredited to sell the notes.
Opening a stockbroker’s account is cheap and can be done for as low as N10,000. You can read about the favourite brokerage companies among Nigerian investors HERE.
After you have opened the account, you are good to go. You just have to request for the FGN savings subscription form, where you will be required to supply some details like your biodata, account details, including the BVN, which is a must for every financial transaction done in Nigeria.
A sample of the subscription form is in this article for guidance.
After all the information is supplied, the next stage is to make payment to the stockbroker’s account and the payment details, proof of payment, sent to the broker for confirmation. This can be done via an email or the chatbox if the company has one.
These are all the things needed to buy the FGN savings bond.
It is important to state that interests paid on the investment vary almost every month. For this month, the DMO is offering the 2-year paper at 1.32 per cent and the 3-year at 1.82 per cent per annum. The interest, which is also called the coupon, is paid four times a year.
On Wednesday, December 16, 2020, the federal government will credit the CSCS accounts of subscribers with the volume of bonds bought.
In the event you intend to sell your FGN savings bond before maturity to use the funds for emergencies, there is always an opening for that because the bonds are traded at the secondary market on the Nigerian Stock Exchange (NSE).
Do you require any additional information, please feel free to use the comment box, I will be readily available to respond to your questions.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Aduragbemi Omiyale
The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.
In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.
However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.
In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.
Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.
Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.
His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.
“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
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