A Review of the Nigerian Energy Industry

Financial market update

10 January 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Foreign capital inflows into Nigeria, Africa’s top oil producer, rose 77 percent from the previous three months to $6.07 billion in the third quarter of 2012, the Central Bank of Nigeria said. Portfolio flows accounted for 76 percent of total inflows during the period, with foreign direct investment accounting for the remainder, the Abuja-based bank said in a Jan. 3 report on its website.

UK: Bank of England policy makers will probably refrain from adding further stimulus to the U.K. economy today as their new credit-boosting program shows early signs of success. Governor Mervyn King and the Monetary Policy Committee will opt to watch for further progress in the Funding for Lending Scheme and keep the target for quantitative easing at 375 billion pounds ($601 billion), said all 39 economists in a Bloomberg News survey.

INDIA: Most Indian equities gained amid increased purchases of domestic shares by foreign funds. Oil & Natural Gas Corp. and Tata Motors Ltd. led the advance. The BSE India Sensitive Index, or Sensex, rose 0.3 percent to 19,716.44 at 10:18 a.m. in Mumbai. Three stocks climbed for every two that fell on the 30-stock gauge.

CHINA: China’s exports rose more than forecast last month and a broad measure of credit surged 28 percent, helping the nation’s new leaders sustain a pickup in economic growth after a seven-quarter slowdown.

Bonds – In the aftermath of profit taking, demand returned to the markets yesterday and yields came off an average 7bps across the curve. Offshore interest still exists across the curve and in quite some decent size and yields will likely dip over the next week.

Bills – Light buying in the markets ahead of perceived aggression at the primary auction leading to lower rates. Rates came off about 30bps on the short dated and about 10bps on the longer dated securities. We will likely see a dip in the markets today on the back of the results especially on the 182day bills.

Money Market – OBB and unsecured O/N rates moderating at11.75% and 12.00% to close yesterday.

CBN WDAS- CBN offered $100mio and sold $43.2mio, only 3 banks bidded at the auction – the marginal rate was maintained at 157.3277 [1% commission inclusive].

Indicative Currency Exchange Rates
                             Bid            Offer
EURUSD           1.3069          1.3079
GBPUSD            1.6028         1.6038
USDJPY             88.23           88.63
USDCHF           0.9250          0.9270
GBPEUR           1.2263           1.2273
USDZAR           8.5751           8.6751
USDNGN          156.20          156.70
JPYNGN           1.7704           1.8204
CHFNGN         168.86           172.86
EURNGN         204.14           208.14
GBPNGN          250.36          254.36
ZARNGN          18.22             20.22

Oil rose in New York for the first time in three days after China’s
exports increased more than forecast in December, signalling growth
in the world’s second- largest crude consumer. Crude for February
delivery advanced as much as 43 cents to $93.53 a barrel in electronic
trading on the New York Mercantile Exchange and was at $93.48 at
2:39 p.m. Singapore time.

Interest rates
NIBOR (%)                     LIBOR (%)

O/N              12.5000        USD 1 month         0.2067
7 Day            13.0000        USD 2 month        0.2520
30 Day          14.0000       USD 3 month         0.3050
60 Day         14.2083         USD 4 month        0.3601
90 Day         14.5000         USD 6 month        0.5000
USD 12 month       0.8340
Y/Y Consumer Inflation November 2012 :       12.3%
FX Reserves: 08 January 2013 (USD bn)          44.653
MPR                                                                           12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria

                               Hi            Low            Close     Prev.Close
USDNGN      157.10/20  156.18/28   156.40/50  156.40/50

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