Author Archives: Mr. Toyin Olaogun

February 2023 FGN Savings Bonds Offer for Subscription

Pursuant to the Debt Management Office (Establishment) Act 2003 and the Local Loans (Registered Stock and Securities) Act, CAP. L17, LFN 2004 Debt Management Office on behalf of the Federal Government of Nigeria Offers for Subscription and is authorized to receive applications for the Federal Government of Nigeria Savings Bond at the following interest rates.

2-Year FGN Savings Bond due February 15, 2025: 10.043% per annum

3-Year FGN Savings Bond due February 15, 2026: 11.043% per annum

Opening Date: February 6, 2023

Closing Date: February 10, 2023

Settlement Date: February 15, 2023

Coupon Payment Dates: May 15, August 15, November 15, February 15

Summary of the Offer

Federal Government of Nigeria (“FGN”)

Units of Sale:
N1,000 per unit subject to a minimum Subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.

Interest Payment:
Payable Quarterly

Bullet repayment on the maturity date


1. Qualifies as securities in which trustees can invest under the Trustee Investment Act.
2. Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, amongst other investors.
3. Listed on The Nigerian Stock Exchange.
4. Qualifies as a liquid asset for liquidity ratio calculation for banks.

Backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria.

Interested investors should contact Securities Africa Financial Limited, appointed as distribution agents by the debt management office.

Banking index raises stock market by N1.08tn

Despite investors’ sentiment trading and uncertainty surrounding the 2023 general elections, the anticipation for dividend payout and sectoral performance of the NGX bank index raised the stock market capitalisation by N1.08tn in January.

The stock market in 2022 recorded foreign investors’ apathy due to the scarcity of foreign exchange, double-digit inflation rate, and hike in the Monetary Policy Rate to 16.5 per cent.

The market capitalisation of all listed stock on the Nigerian Exchange closed trading at N28.998tn on January 31, 2023, an increase of N1.08tn from N27.915tn it closed for trading in 2022.

Also, the NGX the All-Share Index rose by 3.88 per cent or 1,987.61 basis points to 53,238.67 basis points, 1,987.61bps or 3.88 per cent from 51,251.06 basis points it closed for trading in 2022.

This performance was boosted by NGX Banking Index appreciated by 7.5 per cent to 448.85basis points from 417.50 basis points it closed in 2022, while NGX Insurance rose by 5.4 per cent to 183.71basis points as of January 31, 2023, from 174.36 basis points it closed last year.

As the NGX Consumer Goods Index close January 31, 2023 at 622.15 basis points, up by 5.64 per cent from 588.93basis points, NGX Oil & Gas Index rose by 5.4 per cent to 487.51 basis points from 462.48 basis points it closed in 2022.

Capital market analysts said the market so far in 2023, had witnessed sentiment trading by investors, stressing that anticipated dividend payment contributed to the 2.74 per cent growth in the month under review.

The Head, Capital Markets and Treasury at Dash, Ayotunde Alabi, said the anticipation for dividends payout and bargain hunting drove the market performance.

He said, “The anticipation of dividend payouts by companies. Most investors are trying to partake in the dividends that the companies are going to payout during the first quarter.

“And some other investors believed the market has sold to that point where they can tap into supreme bargain hunting.

“They feel the right time to buy is when there are sellers in the market so that they can make more money when everything settles down.”

On his part, the Vice president of Highcap Securities Limited, Mr David Adnori said the anticipation for end-of-the-year dividend distribution lifted the stock market in January 2023.

“The performance of the stock market in January is driven by shareholders’ expectation for the end of the year earnings and distribution of dividends,” he said.

Analysts at Investment One in a report titled, “2022 review and 2023 macro-economic and financial market outlook” said the direction of market performance would be largely determined by the trio impact of fixed income yields in tandem with monetary policy, corporate actions, and election turnouts.

“Ditto to our outlook of tepid movement in yields in the fixed income space and expectations of a less aggressive hawkish tone from the CBN, negative real returns should remain relatively high in the fixed income space giving room for alpha-seeking investors diverting more funds to equities as it remains a solid channel for positive real returns.”

SEC Reiterates Commitment to Step up Investor Education

The Securities and Exchange Commission (SEC) has restated its commitment to continue to educate and enlighten investors in a bid to ensure they make informed investment decisions.

This was stated by Head, Office of the Chief Economist of the SEC, Dr. Okey Umeano during an interview in Abuja.

Umeano stated that the upsurge in the activities of illegal fund managers in recent times has been a source of worry to the Commission and assured investors that the SEC is working hard along with other government agencies to reduce their activities to the barest minimum.

According to Umeano, “This is an area that we are doing a lot and still have a lot to do. If you look at the Capital Market master plan, you will see that a lot of the things we want to do revolves around investor education. In investor education, what we tell investors is how to know who is genuine and it is very simple.

“Just go to the you can just on the search portal type CMO. The search portal comes out and you type the name of the firm marketing to you, if it is not there then it is not registered with SEC that means you are not protected.

“You are not covered by that investor protection that I am talking about. Those who are marketing financial products, investment related financial products must come to SEC and be registered”.

Umeano disclosed that in an effort to further protect investors, the Commission has been carrying out enforcement exercises against these illegal fund managers and would continue to do so.

He said, “We have been going around closing Ponzi schemes and all those illegal fund managers and you know we have been on different stations. I personally have been on several TV stations, radio, and newspaper talking about this. We are about to launch a few billboards around the country saying these same things. Nigerians must understand that the money that they are giving people it is difficult to get.

“It is difficult to raise capital and before you give it to someone, it is important to know that person is the right person. This they can easily ascertain by going on our website. That is the message.

He stated that the Commission has a police Unit that assists in investigating these entities and carrying out enforcement actions when the need arises, while also collaborating with relevant government agencies like the Nigeria Financial Intelligence Unit and the Economic and Financial Crimes Commission.

“The problem with Ponzi schemes is they use the money from Mr. A to pay Mr. B and use Mr. B’s own to pay Mr. C and while they are paying all that, they are taking their own so by the time we close them, there’s not enough money again to return to the people whose money they took. You also know they promise outrageous returns and these returns are paid to the first people.

“We have a few now that we are trying to resolve but I must tell you that it is difficult for anyone who has put money in a Ponzi scheme to recover much. It is important that Nigerians understand it is not nice. If anyone promises you a return too good to be true, then it is probably not true.

He therefore urged Nigerians to be vigilant and carry out their due diligence by visiting the Commission’s website to ascertain registration status of the entities before investing, adding that there is also a need for them to understand the products they are investing in to obtain desired returns on their investments.