A Review of the Nigerian Energy Industry

Financial market update

13 March 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria external trade value for the fourth quarter 2012 stood at N7,185.8 billion, the National Bureau of Statistics (NBS) report shows. The report released on Monday by the NBS revealed a slight increase of N6.4billion representing 0.1 percent over the previous quarter putting the external trade at the end of 2012 at N 28,071.2 billion. The value of export increased from N19,440.4 billion in 2011 to N 22,446.3 billion in 2012.

EUROPE: European Union Trade Commissioner Karel De Gucht asked for a mandate to negotiate a free trade accord with the U.S. that the EU says would add more than 86 billion euros ($112 billion) a year to the bloc’s economy. EU governments must approve De Gucht’s request, the first formal step in the process for beginning negotiations on an agreement to broaden the world’s largest economic relationship.

INDIA: Indian stocks fell the most in two weeks amid concerns an inflation report may limit the central bank’s scope to cut interest rates at a meeting next week. The S&P BSE Sensex index dropped 0.4 percent to 19,481.85 at 12:02 p.m. in Mumbai. Consumer-price inflation accelerated 10.9 percent from a year ago in February, data showed yesterday. The government may report tomorrow that wholesale prices climbed 6.6 percent last month, compared with 6.62 percent in January, according to a Bloomberg survey.

CHINA: China’s new leaders may further loosen interest-rate controls this year while allowing limited changes to one-child and household-registration policies that threaten to restrain growth, a survey of analysts shows. Twelve of 16 analysts expect China to relax or remove the cap on deposit rates or the floor on lending rates, according to a Bloomberg News survey conducted ahead of Xi Jinping’s appointment as president tomorrow.

Bonds – Volatile session yesterday ahead of today’s auction. Market opened bullish on Tuesday but sold off to close as the market aims to position ahead of the auction today where there is a great deal of uncertainty.

Bills – Relatively quiet session yesterday, some light demand feeding into the market but nothing significant and no interest yesterday seen on the longer dated maturities.

Money Market – OBB and unsecured O/N rates up to 10.50% and 10.75% on Tuesday as liquidity begins to thin out slowly.

Indicative Currency Exchange Rates
Bid              Offer

EURUSD        1.3060            1.3070
GBPUSD         1.4953            1.4963
USDJPY           95.50              95.90
USDCHF         0.9434           0.9454
GBPEUR          1.1448           1.1458
USDZAR          9.1361            9.2361
USDNGN         157.95            158.70
JPYNGN          1.6539            1.7039
CHFNGN         167.43            171.43
EURNGN         206.28           210.28
GBPNGN          236.18           240.18
ZARNGN           17.29              19.29

West Texas Intermediate advanced, narrowing its discount to Brent crude to the lowest level in more than five weeks, as the euro trimmed losses against the dollar and OPEC increased production. WTI for April delivery gained 48 cents, or 0.5 per cent, to settle at $92.54 a barrel on the New York Mercantile Exchange.

Interest rates
NIBOR (%)                     LIBOR (%)

O/N              10.7917          USD 1 month               0.2032
7 Day            11.0417          USD 2 month               0.2415
30 Day         11.3333          USD 3 month               0.2811
60 Day         11.6250          USD 4 month              0.3331
90 Day         11.8333          USD 6 month              0.4459
USD 12 month            0.7305
Y/Y Consumer Inflation January 2013 :             9.00%
FX Reserves: 4 March 2013 (USD bn)                47.563
MPR                                                                            12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

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