See How Much Govt. Has Raised From Savings Bond
As you may know, as part of efforts to raise the money to execute the 2017 budget, the federal government started issuing FGN Savings Bond.
The bond targeted low-income earners to drive savings and investment culture.
Data obtained from the DMO, which issues the bond on behalf of the government, showed that the Federal Government has raised a total of 7.3 billion naira from the FGN Savings Bond in 2017.
The savings bond programme started in March 2017 and is expected to continue this year.
However, one interesting thing to note about the bond is that millions of Nigerians latched onto it at the beginning but seemed to lose interest as time went by.
The DMO data showed that the initial auction of the FGN Savings Bond had the largest participation in the first quarter and started dropping in the second and third quarters.
At the end of first quarter, in April, the DMO raised 1,288.02 billion naira that comprises of 419.33 million naira and 868.69 million naira for a 12.794% and 13.794%, two- year and three-year savings bond, respectively.
In May it raised 791.15 billion naira with yields rising to 13.189% for the two-year paper and 14.189% for the three-year allotment.
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The yield remained the same in June, but the amount raised dropped to 607.26 million naira.
However, an increased yield failed to spike interest in July as only 400.57 million naira was raised from the two-year and three-year paper although the yield for the papers were raised to 13.386 and 14.836% respectively.
The interest further diminished in the last quarter with the December allotment figure showing that 246.41 million naira was raised, the lowest figure for the year.
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