The Director-General, Debt Management Office (DMO) Abraham Nwankwo yesterday in Kano stated that the newly introduced Federal Government of Nigeria Savings Bond is designed to empower Nigerians across board with the financial capacity to acquire and live better lives.
Nwankwo who spoke to representatives of business groups and trade unions during a workshop to sensitise people on the programme, said statistics have shown that Nigeria is witnessing economic growth, but regretted that the growth, “does not truly reflect in the quality of lives of majority of Nigerian citizens.
“This prompted the Federal Government to introduce the FGN Savings Bond, which could be afforded by barbers, water vendors, beans cake sellers and petty trader.” He added that before now, the existing FGN Bond is of benefits to solely cooperate institutions and wealthy individuals.
He said it was against this backdrop that the Federal Government came up with its avings bond aimed at achieving an all inclusive economic growth.
“The savings bond is targeted at low income earners, artisan, and rural dwellers, with the view that they lend money to the Federal Government from which the government can resort to the provision of infrastructural development and address various public demands with resorting to borrowing,” he added.
He said the bond was designed in a manner wherein rural communities could key into it, without going through the rigours.
He pointed out that the savings bond will be traded on the floor of the Nigeria Stock Exchange (NSE).
On the differences between the newly introduced savings bond and ponzi schemes, he said people’s investment are secured, pointing out that the bond is secured by the Federal Government.
He added that the saving bond cannot default owing to the guaranty that it is backed by the Federal Government.
He dismissed the perception in certain quarters, that the Federal Government introduced the bond to bully other players in the sector, adding that the aim of the government is to enable Nigerians to plan and execute their intended future projects by investing in the bond to accumulate whatever amount they require to carry their spelt out project.