A Review of the Nigerian Energy Industry

Financial market update

21 June 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria will earn at least 200 billion naira ($1.2 billion) from the sale of 18 power companies created out of the state-owned monopoly, the country’s privatization agency said. Technical and financial proposals for the generation and distribution companies will be submitted by bidders next month for evaluation, the Abuja-based Bureau of Public Enterprises said yesterday in an emailed statement. The bids will be evaluated in August and winners will be announced in October, it said.

EUROPE: European stocks fell from their highest level in five weeks, as the Federal Reserve cut its growth forecast for the U.S. economy and a survey showed China’s manufacturing may shrink for an eighth month. U.S. index futures and Asian shares also dropped. The Stoxx 600 lost 0.5 percent to 248.47 at 8:06 a.m. in London, sliding from its highest level since May 11.

INDIA: India’s rupee fell for a fourth day after the Federal Reserve lowered its economic growth estimate, damping the outlook for the nation’s exports. The Fed’s assessment came days after Reserve Bank of India Governor Duvvuri Subbarao said the central bank may have to sacrifice expansion in the $1.7 billion economy to temper inflation. Overseas investors sold an average $113.3 million more local equities a day than they bought this month, compared with $112.5 million in May and $203 million in April, exchange data show.

Bonds – Quiet markets on Wednesday, some demand feeding in on the 5yr towards the close though yields only dipped about 3bps. Volumes still very low.

Bills – Bill market was fairly stable yesterday, rates inch down slightly, most market participants holding for the auction as a guide. The short dated maturities were bought lightly while the longer dated maturities were stable.

Money Market – OBB and unsecured O/N rates up to 14.50% & 15.50%. Liquidity levels still relatively low.

CBN WDAS AUCTIONOffered: 350mio Sold: 350mio
Marginal rate: 155.90
Weighted average: 155.98
No. of Banks: 20

FX
Hi             Low      Close         Prev.Close
USD/NGN
162.40/50  161.15/25   162.27/37   161.15/25

NIBOR (%) LIBOR (%)

 

O/N

 

16.0417

 

USD 1 month

 

0.2453

 

7 Day

 

16.2917

 

USD 2 month

 

0.3478

 

30 Day

 

16.6667

 

USD 3 month

 

0.4676

 

60 Day

 

16.8750

 

USD 4 month

 

0.5681

 

90 Day

 

17.1033

 

USD 6 month

 

0.7374

 

USD 12 month

 

1.0685

 

Y/Y Consumer Inflation May 2012 :

 

12.7%

 

FX Reserves: 19 June 2012 (USD bn)

 

37.242

 

MPR

 

12.00%

 

Source: FMD and CBN

 

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