A Review of the Nigerian Energy Industry

Financial market update

27 December 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The Transmission Company of Nigeria (TCN) has said that a new power generation peak of 4,502.2 Megawatts (MW) was achieved on Friday, December 21, 2012, and was efficiently wheeled by TCN. In a statement by the company, signed by its Assistant General Manager (Public Affairs), Mr Dave Ifabiyi, TCN said that the new generation peak of 4,502.2MW is an improvement on the 4,454.1MW attained on Wednesday, December 19, 2012 and assured that as gas supply continues to improve and more National Integrated Power Projects (NIPP) come on stream, the transmission and distribution companies will continue to harness every available generation to ensure that stable electricity supply is delivered to electricity customers.

EUROPE: Spain said steps to control costs at the Bank of Spain don’t undermine the regulator’s independence, after El Pais reported that European Central Bank President Mario Draghi raised concerns about the measures. The Budget Ministry said imposing limits on Bank of Spain personnel costs in the 2013 budget is subject to “maintaining the autonomy of the Bank of Spain.”

INDIA: India’s rupee climbed to a one-week high as data showed global funds bolstered ownership of local stocks at the fastest pace in 10 months after policy makers stepped up efforts to revive the economy. The rupee rose 0.1 percent to 54.775 per dollar as of 11:02 a.m. in Mumbai, according to data compiled by Bloomberg.

CHINA: China plans to increase the budget deficit by 50 percent to 1.2 trillion yuan ($192 billion) in 2013, including the sale of 350 billion yuan of bonds to fund local governments, a person familar with the matter said. The central government deficit is budgeted at 850 billion yuan, according to the person, who asked not to be identified as the deliberations are not public.

Bonds – No trading activity till Thursday 27th December as the market shut for the holidays.

Bills – The Central bank came out on Monday to offer OMO bills with tenors of 115 & 122 days, selling N37billion out of N70 billion at 13.399% on the 115day and N34.538b of N50billion at 13.44%. No secondary market activity on Monday, markets open up again on the 27th.

Money Market – OBB and unsecured O/N rates closed on Monday at 11.00% and 11.25%.

Indicative Currency Exchange Rates
Bid             Offer

EURUSD       1.3246         1.3256
GBPUSD        1.6148         1.6158
USDJPY         85.75           86.15
USDCHF        0.9121         0.9141
GBPEUR        1.2189         1.2199
USDZAR        8.5710         8.6710
USDNGN       156.95         157.45
JPYNGN         1.8303        1.8803
CHFNGN        172.08        176.08
EURNGN        207.90       211.90
GBPNGN         253.44       257.44
ZARNGN         18.31          20.31

Oil traded near the highest level in two months as U.S. lawmakers prepared to resume budget talks and the United Arab Emirates said it arrested members of a terror cell that was planning attacks on crude-exporting nations. WTI for February delivery was at $91.18 a barrel, up 20 cents, in electronic trading on the New York Mercantile Exchange at 3:03 p.m. in Singapore.

Interest rates
NIBOR (%)                     LIBOR (%)

O/N              11.1667          USD 1 month           0.2097
7 Day            11.7917          USD 2 month           0.2540
30 Day         12.4583         USD 3 month           0.3100
60 Day         13.0833         USD 4 month           0.3626
90 Day         13.5833         USD 6 month           0.5103
USD 12 month         0.8430
Y/Y Consumer Inflation August 2012 :                12.3%
FX Reserves: 20 December 2012 (USD bn)         44.383
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   157.00/10   157.20/30   157.27/37

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