By Chinenye Anuforo
As part of efforts aimed at creating awareness on investment opportunities on the Nigerian Stock Exchange (NSE), Capital Bancorp Plc has unfolded the benefits of investment in fixed income securities to the officers of Lagos State Federal Road Safety Corps (FRSC).
Besides, the interface held in Badagry,exposed the participants to the benefits of the Federal Government’s Savings Bond which has attracted many investors.
Speaking at the investment forum organized by the FRSC, the Group Managing Director and Chief Executive Officer, Capital Bancorp Plc, Mr. Aigboje Higo explained that investors would always have opportunities to make good returns from an array of investment outlets.
Aigboje who spoke extensively on “Maximizing Wealth through FGN Savings Bonds and Other Investment Opportunities” stated that FGN Savings Bonds provide many benefits: “ Investment in the FGN Bonds is risk free, being a Federal Government’s instrument. The Bond offers better returns to investors, serves as steady source of income as coupon is paid quarterly, offers capital preservation, an alternative to portfolio diversification, tax-free investment, use of investment as collateral for loans, opportunities for investment at retirement and re-investment of coupons “, Aigboje said.
Speaking on the difference between Treasury Bills and FGN Savings Bonds, he explained that Treasury Bills have shorter tenures, ranging from 91 days to 182 days whereas FGN Savings Bonds have duration of between two and three years. He also stated that Treasury Bills are sold via auction determined by the market forces but FGN Savings Bonds are sold by offer for subscription with rates determined by the Debt Management Office (DMO),using prevailing market rates.
Aigboje listed other investment opportunities for discerning investors as fixes deposits, commercial papers, FGN Bonds, Sub-National Bonds and Corporate Bonds among others.
He noted that there was dearth of knowledge of investment in the capital market on the part of the FRSC but assured them that the interactive session would assist in their investment decisions whenever they engage Stockbrokers and other financial agents.