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Good afternoon distinguished ladies and gentlemen.
On behalf of the National Council and Management of the Nigerian Stock Exchange (NSE), I welcome you all to the Retail Bond Workshop organized in collaboration with Debt Management Office (DMO) and Stanbic IBTC Stockbrokers. We are truly pleased to host this event and believe your participation is a testament to your interest and commitment to the growth of the Nigerian Debt Market.
From our humble beginnings of listing and trading Federal Republic of Nigeria (FGN) Development Stocks in 1961, the Exchange is delighted to have revolutionized into a multi-asset hub with a N12.47tn debt market providing investors access to a wide range of investment opportunities in the domestic and international capital market through the listing of sovereign, sub-national, corporates and supranational debt issues.
Our partnership with the DMO towards creating investment opportunities for retail investors in the Debt Market dates to the launch of the NSE Retail Bond Market in 2012; when the DMO appointed a Government Stockbroker to provide liquidity in FGN bonds on our bourse. With the launch of the NSE Retail Bond Market, the Exchange sought to promote financial inclusion, while stimulating retail investor participation in the Nigerian Debt market. Prior to that time, investing in listed debt instruments had been dominated by institutional investors trading in wholesale denominations. In March 2017, the Exchange in collaboration with the DMO launched the FGN Savings Bond having recognised the opportunity presented by the Nigerian demographic to diversify Government’s funding sources as well as enhance national savings culture. Since its debut issuance of NGN2.067bn, retail investors from across the six (6) geo-political zones and the diaspora have invested in the FGN Savings Bond with the DMO raising over ₦13bn from 2-year and 3-year bond maturities as at July 2019.
Despite these teeming efforts, only about 3%[1] of Nigeria’s adult population currently participate in the Nigerian capital market; an indication that there is need for increased collaborative efforts in promoting higher levels of financial inclusion in Nigeria. In achieving our strategic vision to become the preferred Exchange hub in Africa, we will continue to pursue initiatives that seeks to increase domestic participation in capital market through increased access to investment solutions, as well as support government to achieve inclusive growth and sustainable development
Today’s workshop is aimed at promoting awareness on investing in Federal Government of Nigeria (FGN) securities with discussions on investment opportunities in FGN Bonds, trading of FGN securities on the NSE as well as addressing the issues around the purchase of FGN securities, payments of coupons, complaint resolution with a view to increasing retail participation in FGN securities and Debt Capital Market as a whole.
Our appreciation goes to the management of DMO under the leadership of Ms. Patience Oniha for their continued commitment to deepening the Nigerian capital and promoting financial inclusion through several initiatives which we have collaborated over the years. I also thank the Government Stockbrokers, StanbicIBTC Stockbrokers for their support in deepening the retail bond market. We believe that the learnings from this workshop will help you recognize the opportunities in the Debt Capital Market and identify channels through which they can be accessed.
The Exchange promises to continue its collaboration with the Government and market stakeholders to collectively enhance market depth and domestic participation in the Nigerian capital market.
I welcome you once again and thank you all for listening.
[1] CSCS account database
