Investors are eligible to invest in FG’s security bonds, DMO clarifies
The Debt Management Office (DMO) has cleared the air on eligible investors for securities issued by the Federal Government of Nigeria (FGN).
In a statement on its website, the DMO says the circular issued by the Central bank of Nigeria is only limited to Open Market Operation Bills (OMO Bills).
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“Following the Circular to All Banks referenced FMD/DIR/GEN/OGC/14/009 dated October 23, 2019 issued by the Central Bank of Nigeria (CBN), it has become necessary for the Debt Management Office (DMO) to issue this Notice on Eligible Investors for Securities issued by the Federal Government of Nigeria (FGN).
“The general public is hereby advised that Open Market Operation Bills (OMO Bills) are securities issued by the CBN for monetary management purposes. Thus, the Circular in question which excluded some investor categories from investing in OMO Bills is limited to OMO Bills and does not apply to securities issued by the FGN.
“DMO assure the general public that there is no restriction on persons who can invest in FGN Securities. Thus, all investors, local and foreign, including individuals, co-operative societies, social clubs, town associations, local corporates, fund/asset managers, pension funds, insurance companies, banks and others are eligible to invest in FGN Securities,” the statement said
The agency further stated that it offers a wide range of FGN Securities in various tenors to meet the needs of its growing and diverse investor base, noting that securities whose tenors currently range from 91 Days to 30 Years are Nigerian Treasury Bills (NTB), Federal Government of Nigeria Bonds (FGN Bonds), Federal Government of Nigeria Savings Bond (FGNSB), Sukuk and Green Bonds.
