Leadership (Abuja)
30 August 2008
The deep strength and resilience of the Nigerian economy, according to the director-general of the Debt Management Office (DMO), Dr. Abraham Nwankwo, has been confirmed by the performance of the FGN Bond auction which was held in Abuja yesterday.
The DMO offered two tranches for subscription: N30 billion for 3 years and N20 billion for 10 years. Both offers were oversubscribed. The subscription for the 3-year bond was N32.34 billion, an oversubscription of 7.8 %, while the subscription for the 10-year bond was N44.26 billion, an oversubscription of 121%. The offer amounts of the two tenors were allotted at the marginal rates of 11.4% per annum for the 3-year bond and 12.749 % for the 10-year bond.
Dr. Nwankwo said that the development signifies at least three things: "One is that it reinforces the message of the rebound of the stock market, which is that the Nigerian economy is deep, strong and resilient," he noted. "Two is that the fact that investors, local and foreign, oversubscribed the 10-year bond by as much as 121 %, shows that they appreciate that Nigeria's economic fundamentals remain quite robust. Three is that investors in particular, and the international financial community in general, have demonstrated their confidence in the current economic transformation initiatives of the Nigerian government, and in the long term, continued progress of the economy. There is no better way to confirm this than to note that they are very excited to take long-term positions by investing in the country's 10-year debt offer."
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Now Dr. nwankwo, Nigerian Citizens had entrusted on your care their livelihood, the next question is can you protect them from smash and grab of Nigerian banking and finanaicl intitution mentality.