Lagos — An investment expert, Mr Malcolm Gilroy, yesterday said that the value of untapped bonds at the Nigerian Stock Exchange (NSE) currently stood at N7.5 trillion.

Gilroy, who is the Global Head Sales &Trading, Dunn Loren Merrifield Ltd, Lagos, disclosed this at the Capital Market Correspondents Association of Nigeria (CAMCAN) forum in Lagos.

He said of the amount, the Debt Management Office (DMO) has N3.5 trillion while the Asset Management Corporation of Nigeria (AMCON) has N3 trillion.

He also said that state governments and corporate bonds contributions stood at N1trillion, adding that the amount was huge because the bonds had not been tapped for capital projects.

Gilroy, who spoke on "Opportunities in the Nigerian Bond Market", called on the three tiers of government to access the bond market for infrastructural development.

He said that the opportunities in the nation's bond market were inherent but were underutilised due to low awareness and patronage.

He urged the Central Bank of Nigeria (CBN) to ensure reduction in the monetary policy rates to make the bond market more attractive.

Gilroy observed that high interest rates had discouraged local government participation in the bond market in recent time. According to him, the bond market will experience more of state and local government bonds as well as corporate bonds if there is reduction in the monetary policy rates.

Dunn Loren Merrifield is a full-service investment house that trades in equities, fixed income currencies and hedge funds.

It also provides first class research services to companies and works with international emerging fund managers and international banks with an appetite for sub-Saharan Africa investments. (NAN)