In the first seven months of 2024, Federal Government of Nigeria (FGN) Bonds and Sukuk listed on the Nigerian Exchange Limited (NGX) reached N4.54 trillion.
This amount is higher than what was listed for equities and new corporate bonds during the same period. Investors have shown strong interest in FGN Bonds due to their attractive returns.
The increase in bond listings reflects a shift in investment preferences, especially as inflation impacts other investment options. Pension Funds Administrators and other investors are turning to FGN Bonds for more stable returns.
However, there are worries about Nigeria’s growing debt. Analysts say that the country’s debt could become a problem if not managed properly.
They suggest that more companies should be encouraged to list on the NGX to boost market activity and liquidity.
(This Day)