A Review of the Nigerian Energy Industry

Financial market update

09 February 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Former Chairman of the Economic and Financial Crimes Commission (EFCC), Malam Nuhu Ribadu, has made a stageback to government. He was appointed on Tuesday as chairman of the newly 21-member of Petroleum Revenue Special Task Force by the Federal Government. In a statement issued in Abuja, the Minister of Petroleum Resources, Diezani Alison- Madueke, said the Task Force was designed to enhance probity, transparency and accountability in the operations of the petroleum industry. [Guardian]

EUROPE: Euro-area finance ministers are due to gather today in an emergency meeting in Brussels as the Greek government pushes to complete talks on terms of a rescue. The euro erased losses after the meeting was announced and was up 0.1 percent at $1.3247 at 6:40 p.m. yesterday.

US: U.S. stocks were little changed on Wednesday, after the Dow Jones Industrial Average reached the highest level since 2008 on Tuesay, as Greek Prime Minister Lucas Papademos began talks with political leaders on terms required for a bailout.

Bonds – After Tuesday’s sell off, we saw some light retracement across the curve yesterday. The deeply discounted 7.000% FGN OCT 2019 saw some decent demand, closing down 29bps on the day. The T-bill result today will likely stimulate yield movement should we see any surprises.

Bills – While the market waited in anticipation of yesterday’s primary auction, some demand fed into the curve seeing rates down around 25bps across all the maturities.

Money Market –
OBB & unsecured rates closed at 14.00% & 14.50% respectively. No OMO activity on Wednesday though there was a primary auction of N150bio.

                             Hi                     Low                 Close              Prev.Close
USD/NGN    160.35/45    159.37/47    160.40/50   160.40/50

NIBOR(%)                              LIBOR (%)
O/N                   14.7500        USD 1 month           0.2548
7 Day                15.125            USD 2 month          0.3778
30 Day             15.620            USD 3 month          0.5133
60 Day             16.000           USD 6 month          0.7623
90 Day             16.4583         USD 12 month         1.0763
Y/Y Consumer Inflation December 2011 :           10.30%
FX Reserves: 02 February 2012                  (USD bn) 34.7
MPR                                                                                       12.00%
Source: FMD and CBN

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