TO create awareness on investment opportunities on the Nigerian Stock Exchange (NSE), a frontline securities and investment company, Capital Bancorp Plc, has unfolded the benefits of investment in fixed income securities to the officers of the Federal Road Safety Corps (FRSC) in Lagos State.
The interface held in Badagry exposed the participants to the benefits of the Federal Government’s Savings Bond, which has attracted many investors.
At the forum organised by the FRSC, Group Managing Director, Capital Bancorp Plc, Mr Aigboje Higo, listed the many benefits of the FGN Savings Bonds to investors.
According to him, investment in the FGN Bonds is risk-free, being a Federal Government’s instrument. It offers better returns to investors and it serves as steady source of income as coupon is paid quarterly.
He outlined other benefits to include capital preservation, alternative to portfolio diversification, tax-free investment, use of investment as collateral for loans, opportunities for investment at retirement and re-investment of coupon.
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 between two and three years.
He noted that Treasury Bills are sold through 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 investors to include fixed deposits, commercial papers, FGN bonds, sub-national bonds and corporate bonds.
He noted that there was dearth of knowledge of investment in the capital market on the part of the FRSC, assuring them that the interactive session would assist in their investment decisions whenever they engage stockbrokers and other financial agents.
In his remarks, the state Sector Commander, FRSC, Mr Hignus Omeje, commended Capital Bancorp for the initiative, noting that many senior officers were not exposed to the investment opportunities in the financial market when they were young officers.
Omeje urged officers of the FRSC to take advantage of emerging investment opportunities.