By Dipo Olowookere
Thirteen Primary Dealers/Market Makers have been licenced by the Debt Management Office (DMO) for the Federal Government of Nigeria (FGN) Bonds.
A circular released by the debt office disclosed that the 13 companies were given the licence with effect from August 1, 2018.
According to the list, the 13 companies ate Access Bank Plc, Citibank Nigeria Ltd, Coronation Merchant Bank Ltd, Ecobank Nigeria Ltd, FBNQuest Merchant Bank Ltd, First Bank of Nigeria Ltd, First City Monument Bank (FCMB) Plc, FSDH Merchant Bank Ltd, Guaranty Trust Bank (GTBank) Plc, Stanbic IBTC Bank Plc, Standard Chartered Bank Nigeria Ltd, United Bank for Africa (UBA) Plc and Zenith Bank Plc.
The above financial institutions will play the role of primary dealers and market makers.
According to the DMO, the introduction of a PDMM system was intended to enhance the ability of the agency to achieve efficient management of Federal Government of Nigeria debt portfolio, through the development of strong primary and secondary markets.
Business Post reports that the system allows the licenced institutions to exclusively purchase and/or underwrite Government Securities issued for their own holding and/or for resale and on behalf of customers.
Their major role is to, among others, take up, market and distribute the Primary Issuance of FGN Securities and enhance secondary market trading activities.
The Debt office has announced August 15, 2018 for the sale of the next FGN Bonds.
Adedapo Adesanya