A Review of the Nigerian Energy Industry

Financial market update

21 March 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria’s crude oil production may rise by 90% this year, as the Nigerian National Petroleum Corporation (NNPC) has concluded plans to increase the output from 1.9 million barrels per day (mbpd) to at least 3.5 million barrels per day (bpd) within the next few months. Besides, the corporation has projected $10 billion gas-based investment into the country, by next year.

EUROPE: European stock futures slipped, indicating the Stoxx Europe 600 Index will drop for a fourth day in five, as Cyprus’s President worked on a new plan to avoid financial collapse. Futures on the Euro Stoxx 50 Index, a benchmark for the euro region, lost 0.3 percent to 2,639 at 7:07 a.m. in London.

INDIA: Indian equities ended a four-day decline on speculation a rift in the ruling coalition may not slow overseas fund flows into local shares. The S&P BSE Sensex rose 0.7 percent to 19,011.02 at 12:17 p.m. in Mumbai. Volumes on the gauge were 24 percent above the 30-day average for this time of day.

CHINA: Chinese stocks rose, extending the biggest one-day gain in two months, as a private survey showed manufacturing is expanding at a faster pace in March. The Shanghai Composite Index added 0.3 percent to 2,324.24 at the close. The CSI 300 Index climbed 0.2 percent to 2,614.99.

Bonds – Relatively more stable market on Wednesday, yields coming off in the market after a second day of demand flowing into the market. The rally likely to continue today with a slowdown when it dips past the 11.00% level.

Bills – Quiet session yesterday as the market held off in anticipation of the auction results, towards the close rates sold off going up about 40bps across as sentiment that the auction would close higher became apparent.

Money Market – OBB and unsecured O/N rates trading down to 10.15% both yesterday. Market still liquid from the FAAC inflow on Tuesday.

CBN WDAS AUCTION- CBN offered and sold $280m. Marginal rate at 155.76 naira, same as previous sale on March 18.

Indicative Currency Exchange Rates
Bid           Offer

EURUSD        1.2939       1.2949
GBPUSD         1.5125       1.5135
USDJPY          95.82        96.22
USDCHF         0.9440     0.9460
GBPEUR         1.1687       1.1697
USDZAR         9.3062      9.4062
USDNGN         158.25      159.00
JPYNGN          1.6515       1.7015
CHFNGN         167.64      171.64
EURNGN        204.76      208.76
GBPNGN         239.35      243.35
ZARNGN         17.00        19.00

West Texas Intermediate oil swung between gains and losses after the biggest advance in two weeks as U.S. crude stockpiles unexpectedly fell and manufacturing accelerated in China. WTI for May delivery was at $93.27 a barrel in electronic trading on the New York Mercantile Exchange, down 23 cents, at 1:16 p.m. Singapore time.

Interest rates
NIBOR (%)                         LIBOR (%)

O/N               10.2500            USD 1 month            0.2047
7 Day             10.5000            USD 2 month           0.2430
30 Day          10.8333             USD 3 month           0.2841
60 Day          11.1250              USD 4 month           0.3331
90 Day          11.5000             USD 6 month           0.4479
USD 12 month          0.7370
Y/Y Consumer Inflation February 2013 :             9.5%
FX Reserves: 15 March 2013 (USD bn)                48.315
MPR                                                                             12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

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