A Review of the Nigerian Energy Industry

Financial market update

05 June 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Crude oil exports from Nigeria to the United States rose to $34bio in 2011, from $31bio & $19bio in 2010 & 2009 respectively. Within the same period, the figures for non-oil export rose from $101mio in 2009 to $115mio & $150mio in 2010 & 2011 respectively. These figures were presented by the Economic Counsellor of the US Embassy, Mr. Perry Ball, at a recent media briefing in Abuja. He added that the global economic downturn accompanied by drop in oil prices caused the oil export figures to drop in 2009.[Thisday]

EUROPE: European stocks declined for a fourth day as reports showed that orders to U.S. factories unexpectedly fell in April and China’s services-industry growth weakened in May. The Stoxx 600 retreated 0.5 percent to 233.87 at the close in London yesterday. The Stoxx 600 has tumbled 14 percent from its 2012 high amid concern Greece will be forced to leave the euro currency union.

INDIA: India’s rupee declined for the first time in three days after data showed slower gains in U.S. jobs and China’s non-manufacturing industries, adding to concern the global economy is deteriorating. China’s non-manufacturing purchasing managers’ index fell to 55.2 in May from 56.1 in April, according to an official survey published yesterday. Figures released on June 1 showed American employers added 69,000 workers last month, the fewest in a year. The rupee declined 0.1 percent to 55.665 per dollar in Mumbai, according to data compiled by Bloomberg.

Bonds – Bearish in the market on Monday throughout the session, the sentiment driving the bill market finally stimulates some activity in the bond markets. The fear of rising inflation in addition to the depreciating naira some of the reasons for the change in market pattern yesterday. Volumes are still not back to the regular market average but picking up.

Bills – Bearish markets all around on Monday, without any distraction from OMO offerings. Rates up 40-50bps on the short end and about 25-30 on the longer dated maturities. The auction of Wednesday might lead to a slowdown in the secondary market selloff should it cut lower than secondary market levels.

Money Market – OBB and unsecured O/N rates holding at 14.00% & 14.50%. ”

CBN WDAS AUCTION
Offered: 300mio Sold: 300mio
Marginal rate: 155.80
Weighted average: 155.86
No. of Banks: 20

FX
Hi             Low           Close         Prev.Close
USD/NGN   
161.45/55   160.48/58    161.40/50   160.50/60

 

NIBOR (%) LIBOR (%)

 

O/N

 

14.4583

 

USD 1 month

 

0.2398

 

7 Day

 

14.8333

 

USD 2 month

 

0.3468

 

30 Day

 

15.2500

 

USD 3 month

 

0.4679

 

60 Day

 

15.6667

 

USD 4 month

 

0.5681

 

90 Day

 

16.0000

 

USD 6 month

 

0.7379

 

USD 12 month

 

1.0707

 

Y/Y Consumer Inflation April 2012 :

 

12.9%

 

FX Reserves: 30 May 2012 (USD bn)

 

37.682

 

MPR

 

12

 

Source: FMD and CBN

 

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