A Review of the Nigerian Energy Industry

Financial market update

30 January 2013, Sweetcrude, Lagos – Local and international financial market update
NIGERIA: Nigeria on Tuesday said it would at the end of January 2013 launch a road map for the minerals sector to attract more investors in the industry. A statement from the ministry of mine in Abuja said the exploration and exploitation of Nigeria’s solid minerals resources is important component of a diversified economy. According to the statement, when implemented it will assist the sector to contribute at least 10 percent to the nation’s GDP by 2020 and create about three million jobs by 2015.

EUROPE: European stock futures were little changed before a report that may show the U.S. economy grew in the fourth quarter at the weakest pace in almost two years. Futures on the Euro Stoxx 50 Index slipped less than 0.1 percent to 2,749 at 7:13 a.m. in London.

INDIA: Indian stocks gained for the first time in three days, led by energy companies and metal producers. The BSE India Sensitive Index, or Sensex, increased 0.1 percent to 20,018.62 at 11:26 a.m. in Mumbai, with volumes on the gauge 3 percent higher than the 30-day average for this time of the day.

CHINA: Chinese stocks rose, led by property companies and brokerages, as the Shanghai Composite Index extended its bull-market rally. The Shanghai Composite rose 1 percent to 2,382.48, its highest close since May 30. The index has climbed 22 percent since Dec. 3, signaling a bull market to some investors.

Bonds – The market continued to trade relatively quietly on Tuesday, with yields inching downward across board. Yields expected to continue the downward trend over the next few weeks.

Bills – A slowdown yesterday in the markets as liquidity levels dip. Still some demand feeding into the markets though rates didn’t dip as aggressively. Rates on the short end going up as market players sell in anticipation of more short term OMO issuance.

Money Market – OBB and unsecured O/N rates still moving upward closing today at 12.25% and 12.50% as liquidity levels thin out.

Indicative Currency Exchange Rates
Bid             Offer

EURUSD        1.3509          1.3519
GBPUSD         1.5754          1.5764
USDJPY           90.95           91.35
USDCHF         0.9214         0.9234
GBPEUR          1.1660         1.1670
USDZAR          9.0105         9.1105
USDNGN         156.75          157.50
JPYNGN          1.7235          1.7735
CHFNGN         170.12           174.12
EURNGN         211.75           215.75
GBPNGN          246.94         250.94
ZARNGN           17.40           19.40

Oil traded near the highest level in four months before a Federal Reserve policy statement that may signal the central bank will keep adding economic stimulus in the U.S., the world’s biggest crude user. Brent for March settlement rose 6 cents to $114.42 a barrel on the Londonbased ICE Futures Europe exchange.

Interest rates
NIBOR (%)                          LIBOR (%)

O/N               13.1667             USD 1 month            0.2017
7 Day             13.5000            USD 2 month           0.2465
30 Day          13.8750             USD 3 month           0.3005
60 Day          14.2083            USD 4 month           0.3501
90 Day          14.5000            USD 6 month           0.4758
USD 12 month         0.7955
Y/Y Consumer Inflation December 2012 :          12.00%
FX Reserves: 23 January 2013 (USD bn)             45.425
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  157.20/30   156.95/05   157.10/20    157.05/15

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