A Review of the Nigerian Energy Industry

Financial market update

02 May 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: “The Federal Government plans to expand Nigeria’s Liquefied Natural Gas production capacity by 20 million tonnes per annum, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has said .This will increase the nation’s capacity in LNG production to 46 MTPA because it currently produces 26 MTPA. . The minister also disclosed that the nation would increase its production capacity for crude oil to four million barrels per day by 2020. Nigeria currently produces about 2.5 million bpd.” PUNCH

EUROPE: The yuan’s 23 percent rally against the dollar in the past five years doesn’t impress Republican presidential candidate Mitt Romney, who vows on the campaign trail to brand China a “currency manipulator.” The U.S. trade deficit with China shrank to $19.4 billion on a monthly basis in February, the least since March 2011. U.S. goods exports to China have almost doubled in the past five years, climbing to a record $104 billion last year.

CHINA: A Chinese manufacturing index rose in April, signaling that a rebound in the world’s second-biggest economy may help to offset constraints on global growth from austerity measures in Europe. Improvements in manufacturing may encourage Premier Wen Jiabao to extend a two-month pause in lowering banks’ reserve requirements as the effect of previous easing kicks in.

Bonds – The market continued to trade cautiously, quiet session on Monday with yields largely flat across the curve.

Bills – Even with another OMO offering of N30 billion in 339day bills on Monday, the demand fed into the secondary market pulling rates down across all the maturities. The market is fully adjusted to the current levels and some participants would rather position now than lose opportunities in the rally.

Money Market – OBB and unsecured O/N rates inching up on Monday to close at 12.00% and 12.75% after the N172bio debit through OMO bills on Friday and another N51.759bio on Monday as the CBN attempts to mop up the excess liquidity in the system.

CBN WDAS Auction (30/04/2012)
Offered: 120mio Sold: 120mio
Marginal rate: 155.70
Weighted average: 155.76
No. of Banks: 19

FX
                           Hi              Low            Close        Prev.Close
USD/NGN   157.50/60   157.28/38   157.32/42   157.50/60

NIBOR (%) LIBOR (%)

 

O/N

 

12.9583

 

USD 1 month

 

0.2388

 

7 Day

 

13.4583

 

USD 2 month

 

0.3468

 

30 Day

 

14.1250

 

USD 3 month

 

0.4659

 

60 Day

 

14.6250

 

USD 4 month

 

0.5651

 

90 Day

 

14.9583

 

USD 6 month

 

0.7274

 

USD 12 month

 

1.0472

 

Y/Y Consumer Inflation March 2012 :

 

12.1%

 

FX Reserves: 27 April 2012 (USD bn)

 

36.520

 

MPR

 

12

 

Source: FMD and CBN

 

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