A Review of the Nigerian Energy Industry

Financial market update

12 April 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria’s naira strengthened to its highest in almost 7 weeks as oil companies and the central bank sold dollars and the European Central bank signaled it may act to help stem the spread of the region’s debt crisis. The currency of Africa’s biggest oil producer appreciated 0.1% to 157.30 per dollar as of 4:09 p.m. on the interbank market in Lagos yesterday, its strongest since Feb. 23, according to data compiled by Bloomberg.

INDIA: Indian stocks fell to a two-week low after the Asian Development Bank and Credit Suisse Group AG cut the nation’s growth forecast to the slowest pace since 2009. The BSE India Sensitive Index fell 0.3 percent to 17,199.40 at the close yesterday. The gauge erased an intraday loss of 1 percent as European equities rebounded from a two-month low before resuming the decline after news of the Indonesian quake and tsunami warnings in part of Asia and India.

Bonds – Another rally recorded across the curve on Wednesday sustaining the spike in demand in the last week, significant dip on the 20yr 10.00% FGN JUL2030 off 30bps and the 10.70% FGN MAY2018 off 32bps in a bid to lock in at current levels due to initial news of a cut in debt issuance. April auction details have however been communicated, which will weaken the bullish move witnessed in the last days.

Bills – Bills continue to trade flat on the long dated bills as it seemed shy of auction offer volume on the 1yr at ngn80 bio yesterday, highest offered in a while. Cutoff rate has however been announced at 15.07% discount 17.64% yield, a slight dip expected today in reaction and correction to the new cut-off rates.

Money Market– OBB & Unsecured rates flat at 13.00% and 13.25% respectively, cash market remains fairly liquid up ngn102.87 bio.

CBN WDAS Auction

Offered: 150mio                                   Sold: 150mio

Marginal rate: 155.80

Weighted average: 155.88

No. of Banks: 14

WDAS Forward Auction

 

Weighted Avg Spot rate

Tenor

Demand USD mn

Sold  USD mn

Forward Points

155.88

1 month

60.63

59.96

1.9500

2 months

2.55

0.0000

0.0000

3 months

0.0000

0.0000

0.0000

 

FX
                            Hi               Low            Close         Prev.Close
USD/NGN    157.40/50   157.24/34    157.35/45    157.32/42

 NIBOR (%)                                      LIBOR (%)

 

O/N

 

13.4167

 

USD 1 month

 

0.2403

 

7 Day

 

13.7500

 

USD 2 month

 

0.3496

 

30 Day

 

14.3333

 

USD 3 month

 

0.4687

 

60 Day

 

14.8333

 

USD 4 month

 

0.5676

 

90 Day

 

15.1250

 

USD 6 month

 

0.7334

 

USD 12 month

 

1.0507

 

Y/Y Consumer Inflation February 2012 :

 

11.90%

 

FX Reserves: 05 April 2012 (USD bn)

 

35.836

 

MPR

 

12.00%

 

Source: FMD and CBN

 

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