A Review of the Nigerian Energy Industry

Financial market update

16 August 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria’s gross government revenues rose 8% to 825.39 billion 825.39 billion Naira ($5.25 billion) in July, from 763.55 billion Naira in May due to higher crude oil exports, the finance ministry said on Wednesday. Nigeria distributed 564.08 billion Naira to the three tiers of government for July while 213.10 billion Naira was added to the excess crude account (ECA), Minister of State for Finance, Yerima Ngamma told reporters.

EUROPE: Greek Prime Minister Antonis Samaras will next week hold his first meetings with euro zone leaders to assure them he will honour a pledge for more austerity and gauging whether they could grant him more time to pull it off.

INDIA: The Indian rupee was down 55.9675/98 to a dollar versus 55.65/66 previous close. It fell to 56.04 in the session to its lowest in nearly two weeks, tracking global gains in the dollar as upbeat U.S. data cooled expectations of monetary easing.

CHINA: China’s money market rates rose solidly again on Thursday as banks’ ability to handle short-term liquidity crunches weakens, traders said. The country has seen a sharp slowdown of capital inflows recently, coupled with outflows, which is beginning to impact the expansion of the country’s monetary base. China’s foreign direct investment inflows fell 3.6% in the first seven months from a year earlier.

Bonds – Largely illiquid session on auction day with yields dipping on all offered bonds, this is due to feelings of large offshore participation at the auction which will be confirmed when results are announced. Onshore market however remained illiquid and expected to stay till further notice.

Bills – Relatively flat session on bill yields yesterday as the market waits on bond cut-off rate announcement, light sell-off on short-dated bills to raise liquidity for bond auction funding.

Money Market – Another WDAS auction yesterday where lending rates hit high levels, OBB and O/N up 600bps to 22.00% and 25.00% respectively, cash market remains tight and illiquid, expected maturity inflow of about ngn47 bio into the market today.


CBN CUT- OFF RATE – $/NGN 155.80
No. of banks- 12

                          Hi                 Low            Close          Prev.Close
USD/NGN    158.65/75    157.05/15     157.15/25     158.65/75

Interest rates
NIBOR (%)                          LIBOR (%)
O/N                   19.9167          USD 1 month        0.2380
7 Day                 20.1667         USD 2 month        0.2125
30 Day              20.9583         USD 3 month       0.4345
60 Day              21.2917           USD 4 month      0.5404
90 Day              21.1667           USD 6 month      0.7182
USD 12 month    1.0450
Y/Y Consumer Inflation June 2012 :                   12.9%
FX Reserves: 13 August 2012 (USD bn)              36.696
MPR                                                                            12.00%
Source: Reuters, Bloomberg, FMD, Central Bank of Nigeria, Financial Market
Dealers Association Standard Chartered Bank Nigeria.

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