A Review of the Nigerian Energy Industry

Financial market update

21 December 2011, Sweetcrude, Lagos – Local and international financial market update.
· GBP – The Sterling was little changed against the U.S. dollar. The pound was at USD1.5669 early this morning in London against USD1.5663 yesterday. It however weakened to 83.75 pence per Euro from 83.53

· EUR – The Euro rose for a second day before the European Central Bank announces results of its first tranche of unlimited three-year loans amid speculation the facility is spurring demand for the region’s sovereign debt. Euro advanced toward a one-week high against the dollar after Spain’s borrowing costs fell yesterday when the country sold more than its maximum target of bills.

· USD – US Dollar declined against 14 of its 16 major counterparts on reduced demand for a refuge as Asian equities rallied on signs the U.S. economic recovery is being sustained.

· CHINA – Chinese Premier Wen Jiabao said slowing growth and elevated prices are adding to the difficulties the government faces in helping manage the worlds’ second biggest economy. According to him China will keep its export policies such as tax rebates basically stable next year and the government will mainly use fiscal spending to support structural tax cuts and to improve people’s lives.

· Economic News – Nigeria

Yesterday, the National Bureau of Statistics reported rise in CPI at 10.5 percent YoY for the month of November, unchanged from October, the third straight month of double digit inflation, following the rise in September to 10.3 percent. On a MoM basis, headline CPI rose 0.04 percent in November, compared to 0.5 percent in October.

· Bonds – It was a quiet market yesterday. Yields went up across the curve as the trend turned slightly bearish. Market activity is expected to continue to be relatively muted over this festive season and in the run up to the New Year.

· Bills – Quiet in the bill market as well, as the year winds down. Short dated bills continued to dominate most of the activity on Monday.


Hi          Low          Close          Prev.Close

USD/NGN   162.31/41        161.40/50        162.22/32        161.50/60

NIBOR(%)                            LIBOR (%)
O/N               15.1250           USD 1 month              0.2906
7 Day             15.6670          USD 2 month              0.4185
30 Day          16.2500          USD 3 month              0.5698
60 Day          16.7500          USD 6 month              0.7985
90 Day          16.9580          USD 12 month            1.1189
Y/Y Consumer Inflation Oct 2011 :                          10.50%
FX Reserves: 15 December 2011             (USD bn) 33.152
MPR                                                                              12.00%
Source: FMD and CBN

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