A Review of the Nigerian Energy Industry

Financial market update

International News
USD: The dollar sank to a three-month low against a basket of major currencies on Wednesday as markets fretted about the prospect of a U.S. debt default and downgrade, while they cautiously waited to see if Japan would intervene to weaken the yen.
AUD: The Aussie tore to a 29-year peak against a depressed U.S. dollar on Wednesday, while debt futures slumped as an alarmingly high inflation report put a rate hike back on the agenda for this year.
CNY: The yuan hit an all-time high versus the dollar for a sixth straight trading day on Wednesday, as the People’s Bank of China took advantage of a weak dollar to engineer further appreciation in the Chinese currency.
Nigeria News
MPC Highlights
MPR raised by 75bps to 8.50%
Bonds – Traders came out bullish in yesterday’s session despite anticipation of an expected 25-50bps hike on MPR. A volatile session is expected today as market corrects itself slightly to the 75bps hike in MPR.
Bills – Activities ticked up marginally yesterday but still largely cautious due to the day’s MPC meeting. In reaction to the hike today at the meeting, the outlook is bearish though not sharply due to the recent selloff in the market in the last few days which have pushed yields up an average 50bps. T-bill auction holds today for the 91, 182 & 364days tenors where cut-off rates are expected to be higher than last auction.
Money Market – O/N rates dropped by 50bps to 7.00% as market remains liquid and will remain so as NGN130bn of bond matures today.
Interbank/WDAS – $400m will be on offer at today’s WDAS auction.
Hi Low Close Prev.Close
USD/NGN 152.55/65 152.20/30 152.40/50 152.20/30

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