A Review of the Nigerian Energy Industry

Financial market update

10 October 2012, Sweetcrude, Lagos – Local and international financial market update. Nigerian News: President Goodluck Jonathan is expected to deliver the 2013 budget to parliament. Ministers agreed in August to increase spending by five percent but reduce the fiscal deficit in next year.

Nigeria’s attorney general said on Tuesday that the country would not appeal an international ruling that handed the oil-rich Bakassi peninsula to its neighbor Cameron ten years ago, despite calls from the senate to re-open the dispute.

Nigerian FGN Bonds – Yields continued to trade up yesterday as the 16.39% Jan 22s which went up 47bps yesterday went up another 30bps yesterday. The sell off coming as the auction approaches which is set to increase supply on the 22s, something which the market had not previously expected. Market is expected to continue to trade volatile and swing as yields are beginning to look interesting.

Nigerian Treasury Bills – With the auction coming up today the bill market was also quite volatile, an initial sell off yesterday on the long end was quickly followed by a rally which pulled the Sept 2013 in particular down an average 70bps.

Nigerian Money Market – OBB and unsecured O/N rates went up yesterday 100bps to close at 11.50% & 12.00%

ZAR: South Africa’s rand firmed more than 1.4 percent against the dollar, on track for its first daily gain in five trading session, as investors responded to news that some of the thousands of striking truckers are returning to work.

EUR: the Euro dropped to its lowest since Oct 1 against the dollar, as investors shield away from risk on concerns about weak earnings in the United States due to slowing global growth.

GBP: British financial regulation will be tailored to the needs of the wider economy under changes coming in next year. Sterling fell to a one-month low against the dollar after data showed a bigger than expected fall in manufacturing output and a deterioration in the trade deficit.

Indicative Currency Exchange Rates

                                 Bid          Offer

EURUSD              1.2850         1.2900

GBPUSD              1.5950          1.6000

USDJPY               78.00            78.50

USDCHF              0.9400          0.9450

GBPEUR              1.2400          1.2450

USDZAR              8.6500          8.7000

USDNGN             156.00            156.50

JPYNGN               1.9700           2.0300

CHFNGN              165.22           169.22

EURNGN              200.56           206.06

GBPNGN              248.32           255.82

ZARNGN              16.97              18.97


Brent crude slipped near $114 after a jump of 2 percent, with a cloudy economic outlook offsetting fears about disruptions to Middle east oil supply as a conflict between turkey and Syria escalated.

Interest rates

NIBOR (%)                       LIBOR (%)

O/N                 11.3333        USD 1 month              0.21550

7 Day               11.9583        USD 2 month             0.28350

30 Day            13.0000       USD 3 month             0.34675

60 Day            13.8333        USD 4 month             0.43460

90 Day             14.1250        USD 6 month            0.61540

                                                USD 12 month           0.95200

Y/Y Consumer Inflation August 2012 :                     11.7%

FX Reserves: 08 October 2012 (USD bn)                 41.60

MPR                                                                                  12.00%

Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.


                               Hi            Low              Close       Prev.Close

USD/NGN     157.25/35    156.90/00   157.25/35   157.15/25


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