A Review of the Nigerian Energy Industry

Financial market update

International News

EUR: The euro edged up from lows against major currencies in Asia on Thursday but was seen vulnerable to renewed
selling pressure as worries about the euro zone sovereign debt crisis spread to the region’s banking sector.

JPY: The yen briefly fell sharply against the dollar on Thursday, pulling away from a rise close to an all-time
high, but traders said they had not seen any yen-selling intervention from Japanese authorities.

·  CHF: The Swiss franc fell sharply against the euro and the dollar on Thursday as investors hunting bargains piled
into riskier assets after a market rout.

Nigeria News

·  Bonds – Bearish again yesterday with selling sending yields up across the whole curve. Liquidity is thinning out
and as the auction approaches next week we expect a lot of volatility in the run up.

·  Bills – Auction day yesterday brought with it a lot of uncertainty and some volatility, the long dated maturities reacting most sharply because of the large size [N60bio] being offered on the one year bill. The 91, 182 & 364 day bills closed at 7.34%,
8.2405% & 9.05% respectively at the auction.

·  Money Market – Unsecured O/N rates went up about 225bps to 10.50% as the liquidity thins out due to funding for the FX
auctions and T-Bill auctions. Rates will probably hold here until the next FAAC inflow.

·  Interbank/WDAS – $250m was offered and sold at yesterday’s WDAS auction with demand at $369.30m. CBN
intervened at $/NGN152.26.


                            Hi                  Low                Close              Prev.Close

USD/NGN        153.92/02    152.75/85     152.92/02     152.65/75

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