A Review of the Nigerian Energy Industry

Financial market update

22 March 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria’s naira depreciated for the first time in three days on concern that rising government spending could trigger accelerating inflation even after the central bank held its benchmark interest rate at a record high of 12%. The naira depreciated 0.1% to 157.9575 per dollar as of 4:55pm in Lagos on Wednesday, according to data compiled by Bloomberg.

EUROPE: Most European stocks declined as a report showed sales of previously owned U.S. houses unexpectedly fell in the world’s biggest economy. The Stoxx Europe 600 Index declined 0.1 percent to 268.67 at the close in London yesterday. The gauge has still gained 9.9% this year as the European Central Bank disbursed 1 trillion euros ($1.3 trillion) to the region’s lenders and U.S. economic data surpassed estimates.

Bonds – Bond yields traded lower in Wednesday’s session as it continued to react to the CPI figure for February and the hold in MPR at 12.00%, the resurgence in demand for bonds have pushed up trade volumes and a downward pressure on yields across the curve in the last two days. 16.39% FGN JAN2022 remains most actively traded bond and highest yielding off 18bps on the day.

Bills – Yield on bills closed 15 – 20bps lower in yesterday’s session in light reaction to MPC decision announcement on Tuesday, the buying interest recorded from both onshore and offshore clients remain sustained as yields continue to dip from every session in the last two weeks, this should be sustained into the coming week as we expect the monthly statutory inflow anytime from now.

Money Market – OBB and Unsecured rates close at 14.00% and 15.50% respectively.

CBN WDAS AUCTION

Offered: 200mio Sold: 200mio

Marginal rate: 156.06

Weighted average: 156.10

No. of banks: 15

CBN WDAS Forward Auction no. 5 (21/03/2012)

Tenor 1mnth 2mnths 3mnths

Amt demanded 27.85m 2.40m —

Amt Sold 27.85m 1.52m —

M.fwd points 1.6910 3.8385 —

weighted avg 156.10 156.10 —

Maturity date 23/04/2012 22/05/2012 —

Number of banks: 3

FX
                                 Hi                Low              Close         Prev.Close
USD/NGN       157.72/82       157.38/48     157.45/55      157.65/75

 

 NIBOR(%)                                         LIBOR (%)

 

O/N

 

15.5833

 

USD 1 month

 

0.2418

 

7 Day

 

15.9167

 

USD 2 month

 

0.3505

 

30 Day

 

16.2000

 

USD 3 month

 

0.4742

 

60 Day

 

16.5000

 

USD 4 month

 

0.5790

 

90 Day

 

16.8333

 

USD 6 month

 

0.7399

 

USD 12 month

 

1.0531

 

Y/Y Consumer Inflation February 2012 :

 

11.90%

 

FX Reserves: 15 March 2012 (USD bn)

 

34.809

 

MPR

 

12.00%

 

Source: FMD and CBN

 

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