A Review of the Nigerian Energy Industry

Financial market update

05 February 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Canadian Minister of International Trade, Ed Fast, has said that Canada will do everything in its power to open more doors to commercial co- operation with Nigeria in the years ahead. The minister gave this assurance during the Lagos Business School (LBS) Networking Breakfast club meeting for his visit on Wednesday in Lagos. According to him, “When it comes to trade between Canada and Nigeria, I am very pleased to report that our numbers are going in the right direction. Nigeria has recently become our largest trading partner in sub-Saharan Africa, with our bilateral merchandise trade reaching $2.7 billion in 2011 – in fact tripling our total from three years ago.”

EUROPE: European stock futures were little changed, after the Stoxx Europe 600 Index yesterday tumbled the most in more than three months, as companies from UBS AG to BP Plc reported quarterly results. Futures on the Euro Stoxx 50 Index expiring in March were unchanged at 2,628 as of 7:16 a.m. in London.

INDIA: Indian stocks fell for the fourth day amid renewed concern about Europe’s debt crisis. Metal producers and industrials led the decline. The BSE India Sensitive Index, or Sensex, slid 0.3 percent to 19,689.32 at 11:46 a.m. in Mumbai.

CHINA: China’s stocks rose for a seventh day as a rally for property and industrial companies spurred a rebound for the benchmark index from earlier losses. The Shanghai Composite Index rose 0.3 percent to 2,434.12 at 1:40 p.m., erasing a loss of as much as 1 percent.

Bonds – Quiet markets on Monday, yields continued to inch downward. Yields expected to continue the downward trend over the next few weeks.

Bills – In the absence of any OMO activity yesterday, the markets were relatively quiet though there was some demand feeding into the longer dated maturities ahead of the bill auction where rates are expected to dip on the back of heavy demand due to the relatively lower supply in long dated securities.

Money Market – OBB and unsecured O/N rates opened the week at 11.50% and 11.750% in the absence of any OMO issuance.

CBN WDAS AUCTION: CBN offered and sold $150mio and maintained the marginal rate at 157.2974 [inc. 1% commission].

Indicative Currency Exchange Rates
Bid               Offer

EURUSD              1.3474              1.3484
GBPUSD              1.5732               1.5742
USDJPY                92.22                92.62
USDCHF              0.9101              0.9121
GBPEUR              1.1675              1.1685
USDZAR              8.9280            9.0280
USDNGN             156.95              157.70
JPYNGN              1.7019              1.7519
CHFNGN             172.45              176.45
EURNGN             211.47              215.47
GBPNGN             246.91              250.91
ZARNGN             17.58                19.58

Oil traded near the lowest level in more than a week in New York, after sliding the most in two months, before a report that may show rising stockpiles in the U.S., the world’s biggest crude consumer. Crude for March delivery was at $95.99 a barrel, down 18 cents, in electronic trading on the New York Mercantile Exchange at 3:15 p.m. Singapore time.

Interest rates
NIBOR (%)                    LIBOR (%)

O/N              11.9583        USD 1 month             0.1982
7 Day            12.4167        USD 2 month             0.2455
30 Day         12.8750        USD 3 month            0.2955
60 Day         13.1667         USD 4 month            0.3461
90 Day         13.4167         USD 6 month            0.4669
USD 12 month          0.7730
Y/Y Consumer Inflation December 2012 :      12.00%
FX Reserves: 31 January 2013 (USD bn)         45.984
MPR                                                                         12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria

Hi                 Low            Close         Prv.Close
USD/NGN  157.40/50   157.23/33   157.30/40   157.30/40

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