By Kadiri Abdulrahman
The Debt Management Office (DMO) on Thursday unveiled Stanbic IBTC Stockbrokers Ltd. as the new stockbrokers of the Federal Government.
This is coming after the expiration of the tenure of CSL Stockbrokers Ltd., a subsidiary of First City Monument Bank (FCMB).
According to the Director-General of DMO, Patience Oniha, Stanbic is a comprehensive financial house with which the Federal Government has done business in other areas.
Oniha described the Stanbic brand as strong and respected with a wide reach.
“It is a name that is familiar to our target investors, and that marches what our needs are.
“Its reputation and diversification as a group qualify it for the appointment,” Oniha said.
She said that the DMO issued securities on behalf of the Federal Government, and the appointment of a government stockbroker is done on behalf of the Federal Government.
“There are two reasons why the DMO, which the largest issuers of securities in the market, needs a stockbroker.
“The first reason is a compliance issue. We are required to have a stockbroker whose functions are clearly defined. Secondly, there is a strong commitment to deepening to capital market.”
She said that there was the retail segment of the market that the DMO has been trying to develop; the savings bond and the sukuk.
“A major mandate for you is to ensure that we are able to attract more investors to the FGN securities, FGN savings bonds, as well as the sukuk, ” she said.
Bunmi Olarinoye, Chief Executive Officer of Stanbic IBTC Stockbrokers Ltd. expressed the firm’s commitment to growing the retail segment of the market.
Olarinoye said that the firm was also thinking of ways and ideas to reach that segment of the market.
“Enlightenment and awareness are the key points that we have noted down, and that we will focus on to ensure that a lot more people become aware of offers from the DMO.
