A Review of the Nigerian Energy Industry

Financial market update

20 January 2012, Sweetcrude, Lagos – Local and international financial market update.
JAPAN: The Bank of Japan will maintain its zero interest-rate policy until at least 2016 as Europe’s debt crisis weights on an economy struggling to overcome deflation, bond market options show. In the same vein, the BOJ next week will probably cut its growth forecast for the year ending in March to reflect a two-month slump in exports after downgrading its economic assessment for the second month in December.

INDIA: The biggest increase in India’s factory production in five months may deter the central bank from cutting interest rates this month, judging by the cost to lock in borrowing costs. The market expects the Governor Duvvuri Subbarao to keep the benchmark

CHINA: China’s stocks rose, sending the benchmark index to its first back-to-back weekly gain in two months, on speculation the government will ease lending curbs to bolster economic growth

NIGERIA : The country lost about N207.408billion to the recent strike embarked upon by organized labour to protest the removal of petroleum subsidy by government, the National Bureau of Statistics (NBS) has stated. According to figures released by the Bureau Wednesday in Abuja, the Wholesale and Retail sector of the economy, which accounts for about 18% of the GDP, recorded the highest loss of about N86.9 billion or about 42% of the overall loss in output during the crisis.

Bonds : The short end saw some light demand yesterday that was relatively quiet in general.

Bills : A bullish market ahead of inflows from FAAC which is expected to put downward pressure on rates. What is
certain is that the CBN will possibly come out to squeeze some liquidity on the back of the FAAC flows at which
point we might see the downward movement in rates retrace.

Money Market : OBB & unsecured rates are stable at 14.00% & 14.50% FAAC flows are expected in before the week’s end. ”

FX
Hi           Low             Close          Prev.Close
USD/NGN
   161.75/85  161.00/10    161.42/52   161.45/55

NIBOR(%)

 

 

LIBOR (%)

 

O/N

 

14.6250

 

USD 1 month

 

0.2789

 

7 Day

 

14.8750

 

USD 2 month

 

0.4093

 

30 Day

 

15.2917

 

USD 3 month

 

0.5612

 

60 Day

 

15.7500

 

USD 6 month

 

0.7918

 

90 Day

 

16.0417

 

USD 12 month

 

1.1101

 

Y/Y Consumer Inflation November 2011 :

 

10.50%

 

FX Reserves: 4 January 2012 (USD bn)

 

33.09

 

MPR

 

12.00%

 

Source: FMD and CBN

 

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