A Review of the Nigerian Energy Industry

Financial market update

12 October 2012, Sweetcrude, Lagos – Local and international financial market update.
Nigerian News: The Federal Government defended its insistence to maintain $75 per barrel oil price benchmark for crude oil in 2013 budget, saying there was need to safeguard the nation’s economy from vagaries of the commodity’s price at the international market and the inflationary trend. Coordinating Minister for the Economy and Finance Minister, Dr. Ngozi Okonjo-Iweala, told newsmen that the action was in line with what is obtainable in all oil dependent nations globally.

Nigerian Bonds – Another relatively flat day in terms of closing yield levels, a bit quieter in terms of activity. Very little intraday movement across the curve and we look towards the auction next week.

Nigerian Treasury Bills – The CBN kept up with its OMO offerings yesterday coming out to offer another N100billion in 70 & 84 day bills. With the auction two days before as well most of the demand has gone into the primary and the OMO and so markets were calm with only some slight selling on the very short dated bills.

Nigerian Money Market – OBB and unsecured O/N rates are averaging 10.50% & 11.00% to close yesterday”.

EURO: The euro rose to a session high against the dollar on reported buying by sovereign investors that also helped trigger automated stop loss orders.

ZAR: South African rand strengthened against the dollar to its strong level in a week after freight employers said they had reached a wage deal to end a three week truck drivers strike.

Indicative Currency Exchange Rates
                            Bid         Offer
EURUSD          1.2970       1.3070
GBPUSD           1.6067       1.6167
USDJPY            78.40         78.90
USDCHF           0.9360      0.9410
GBPEUR           1.2370        1.2470
USDZAR           8.6000      8.7000
USDNGN          156.80       157.30
JPYNGN           1.9700       2.0300
CHFNGN          166.29       170.29
EURNGN         200.76       206.26
GBPNGN         248.64        256.14
ZARNGN         17.12            19.12

Brent crude held over $ 115 a barrel trading near a 4 week high on course for its biggest weekly gain in 2 months supported by tensions between Turkey and Syria lower output at north sea oil fields and upbeat.

Interest rates
NIBOR (%)                  LIBOR (%)
O/N              11.5417       USD 1 month               0.21400
7 Day            12.2083      USD 2 month              0.27800
30 Day         13.2500      USD 3 month              0.34502
60 Day         14.0833      USD 4 month              0.43260
90 Day         14.6667      USD 6 month              0.60390
USD 12 month             0.94150
Y/Y Consumer Inflation August 2012 :                11.7%
FX Reserves: 09 October 2012 (USD bn)            41.60
MPR                                                                             12.00%
Source: Reuters Guardian, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

                            Hi             Low          Close       Prev.Close
USD/NGN   157.25/35  157.05/15   157.15/25   157.15/25

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