A Review of the Nigerian Energy Industry

Financial market update

03 January 2013, Sweetcrude, Lagos – Local and international finanacial market update. NIGERIA: President Goodluck Jonathan has assured that his administration will gear up efforts at delivering on Public Infrastructure, including power supply, agriculture, public transportation, education and health services in 2013. The president’s promise, contained in his New Year message to the nation on Monday, aligns with analysts earlier predictions on the drivers of the county’s economy in 2013.                                                                                               The Nigerian foreign exchange reserves rose 34.45 percent year on year to $ 44.25 billion by Dec 24, latest figures from the central bank.

 · BONDS- The first trading day of the year opened up very bullish as everyone opened  for business and decided to build up on risk early. Yields dipped about 30bps on average across the curve today in a one directional market.

· BILLS– Bearish session yesterday across the maturities as the CBN came out to offer OMO bills in trying to mop up liquidity from the system. The CBN sold N50.25billion in 120day bills at 13.299%, and N90.06billion in 127day bills at 13.34%.

· MONEY MARKET – OBB and unsecured O/N rates opened Stable yesterday at 10.25% and 10.50% as the market remained liquid.


 · YEN: The yen edged higher but remained near a 29-month low versus the dollar and looked fragile. Weighed by expectations of more forceful monetary stimulus by the bank of Japan.

· GBP: Sterling  rose against the dollar after U.S lawmakers averted big tax hikes and spending cuts, but wariness about the UK economic outlook pulled it away from a 16-month high hit in Asian trade

Indicative Currency Exchange Rates
Bid             Offer

EURUSD        1.3140           1.3190
GBPUSD         1.6220          1.6270
USDJPY           87.00            87.50
USDCHF         0.9200         0.9250
GBPEUR         1.2340          1.2370
USDZAR         8.5000          8.5050
USDNGN          156.00          156.50
JPYNGN          1.7828          1.7988
CHFNGN         169.18          169.57
EURNGN         204.98         206.42
GBPNGN         253.03          254.62
ZARNGN            18.34            18.40

The US congress approved fiscal-cliff deal overnight helped to strengthened equity & oil markets, with Brent trading near $113/bbl in US hours.

Interest rates
NIBOR (%)                  LIBOR (%)

O/N              10.5000     USD 1 month          0.20770
7 Day            11.1667       USD 2 month          0.25250
30 Day         12.5417       USD 3 month          0.30500
60 Day         12.9583      USD 4 month          0.36210
90 Day         13.3750      USD 6 month          0.50625
USD 12 month        0.84250
Y/Y Consumer Inflation August 2012 :            12.3%
FX Reserves: 28 December 2012 (USD bn)    44.178
MPR                                                                         12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

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