A Review of the Nigerian Energy Industry

Financial market update

28 November 2012, Sweetcrude, Lagos – Local and international financial market update.
Nigeria – Shanduka Group Ltd, the South African investment company led by businessman Cyril Ramaphosa bought a minority stake in MTN Group Ltd’s Nigerian unit in a strategy to tap into fastr growing African Markets. The investment amounted to USD335m stake into Nigeria’s largest mobile operator with more than 45.6 million subscribers. The purchase of shares were made from three private investors including private equity company African Capital Alliance.

USA – Federal Reserve Bank of Chicago President Charles Evnas talks about the US economy and monetary policy. Evans says the central bank should keep interest rates near zero until unemployment falls to 6.5% or below as long as inflation is under 2.5% aligning himself more closely with other Fed Officials.

Europe – A court will decided tomorrow whether the European Central Bank should release files on how Greece used derivatives to hide its debt in the first legal challenge to the authority’s bid to shield its workings from scrutiny. Bloomberg news sued the ECB in Dec 2010 to obtain the documents under the EU freedom of information rules. The papers may illuminate the role the central bank played as Greece covered up its deficits for almost a decade before seeking a EUR 240 billion bailout and the biggest debt restricting in history.

India – The OECD said on Tuesday that India’s GDP growth could fall to 4.5% in 2012. Based on their report the Euro Zone debt crisis is the biggest threat to global growth. This forecast is lower than the one put out by the IMF last month which came in at 4.9%.

China – China’s stocks fell dragging the benchmark index to its lowest level since 2009 as trading activity slumped. Material and industrial companies led losses. The Shanghai Composite Index slid 0.9% to 1970 as of this afternoon local time. The Shanghai Composite closed below 2000 for the first time since 2009 yesterday and the gauge first broke above 2000 in July 2000 and tripled to 6092 on Oct 16, 2007. It has fallen 10% this year heading for the third straight annual loss as the economy slowed for seven quarters.

Indicative Currency Exchange Rates
Bid           Offer

EURUSD                 1.2925      1.2935
GBPUSD                  1.5999      1.6009
USDJPY                  81.82         82.22
USDCHF                  0.9312     0.9332
GBPEUR                 1.2377      1.2387
USDZAR                 8.8404     8.9404
USDNGN                157.50      158.00
JPYNGN                1.9250      1.9750
CHFNGN                169.14      173.14
EURNGN                203.57    207.57
GBPNGN                251.98      255.98
ZARNGN               17.82         19.82

Oil fell to the lowest levels in a week after report shows rising stockpiles in US. WTI down $0.04 to $87.14/bbl, while Brent settled at $109.87/bbl (-$1.05), with the WTI Brent benchmark premium lower at $22.69.

Interest rates
NIBOR (%)                       LIBOR (%)
O/N               12.5938       USD 1 month            0.2090
7 Day           12.8216        USD 2 month            0.2570
30 Day         13.1352       USD 3 month            0.3115
60 Day         13.3037      USD 6 month            0.5280
90 Day         13.5222      USD 12 month          0.8600
Y/Y Consumer Inflation October 2012 :        11.70%
FX Reserves: 21 November 2012 (USD bn)  43.88
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  157.75/85   157.40/50   157.40/50   157.65/75

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