A Review of the Nigerian Energy Industry

Financial market update

05 April 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The Presidency has approved the $72 oil price benchmark proposed by the National Assembly for the 2012 budget. The Finance Minister Dr Ngozi Okonjo-Iweala disclosed this to reporters at the end of the National Economic Management Team (NEMT) meeting. She said: “On the specific areas of discrepancies, obviously, the first one is the benchmark price that went from $70 to $72, which we have looked at the analysis that it was used for, part of it to reduce deficit, part of it for additional spending and we think this thing is okay.’’

EUROPE: European stocks fell for a second day after Spain sold fewer bonds than its maximum target and the Federal Reserve damped expectations of more monetary stimulus for the U.S. The Stoxx Europe 600 Index retreated 2.2 percent to 258.50 at the 4.30 p.m. close in London yesterday, the biggest decline in almost a month.

Bonds – Markets were still relatively quiet on Wednesday, light trading activity yields largely flat across the curve.

Bills – Bullish market again yesterday with most of the focus on the short dated maturities ahead of the expectation of an inflow of about N93.5billion from maturing OMO bills today. It is unclear if the CBN will refinance the maturing bills and this is what has driven the activity yesterday.

Money Market – OBB and unsecured O/N rates trading stable at 14.50% & 15.50% respectively, market is still short on liquidity.

CBN WDAS Auction

Offered: 150mio                                   Sold: 150mio

Marginal rate: 155.90

Weighted average: 155.97

No. of Banks: 16

WDAS Forward Auction

 

Weighted Avg Spot rate

Tenor

Demand USD mn

Sold  USD mn

Forward Points

155.9700

1 month

36.1400

5.7000

1.8527

2 months

4.0300

1.2700

3.8583

3 months

0.0000

0.0000

0.0000

FX
                             Hi              Low           Close        Prev.Close
USD/NGN     157.63/73   157.53/63  157.55/65     157.52/62

 NIBOR (%)                                           LIBOR (%)

 

O/N

 

15.5000

 

USD 1 month

 

0.2413

 

7 Day

 

15.7500

 

USD 2 month

 

0.3498

 

30 Day

 

16.1667

 

USD 3 month

 

0.4692

 

60 Day

 

16.4583

 

USD 4 month

 

0.5679

 

90 Day

 

16.8333

 

USD 6 month

 

0.7344

 

USD 12 month

 

1.0497

 

Y/Y Consumer Inflation February 2012 :

 

11.90%

 

FX Reserves: 02 April 2012 (USD bn)

 

35.801

 

MPR

 

12.00%

 

Source: FMD and CBN

 

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