A Review of the Nigerian Energy Industry

Financial market update

25 March 2013, Sweetcrude, Lagos – Local and international financial market update.

NIGERIA: Nigeria said all 14 companies bidding for the country’s power utilities, including Transnational Corp. of Nigeria Plc, Siemens AG and China Machinery Engineering Corp., have paid the required 25 percent value of their offers. That’s equal to $559.4 million, according to the Bureau of Public Enterprises. Nigeria, Africa’s top oil producer, is selling majority stakes in power plants and letting private investors acquire as much as 60 percent holdings in six state-owned transmission and 11 power distribution companies spun out of the former state- owned utility.

EUROPE: European stock futures climbed as Cyprus agreed with euro-area finance ministers on a rescue package, lowering the risk of default and an exit from the currency union. Futures on the Euro Stoxx 50 Index, a benchmark for the euro region, advanced 1.6 percent to 2,661 at 7:06 a.m. in London.

INDIA: India will ease investment rules for foreign funds purchasing government and corporate bonds, a move that may help boost inflows from abroad to finance a record current-account deficit. The government will remove all restrictions and sub-limits within the two broad categories starting April 1, keeping the cap for sovereign debt at $25 billion and $51 billion for securities issued by companies, Finance Minister Palaniappan Chidambaram told reporters in New Delhi last week.

CHINA: Chinese stocks fell from a two-week high as declines by phone stocks overshadowed higher-than- estimated profit from China Construction Bank Corp. About five stocks declined for every four that advanced in the Shanghai Composite Index, which lost 0.1 percent to 2,326.72 at the close.

Bonds – An initial upward trend in yields on Friday though some significant demand came into the market to close pulling yields down about 7bps on average below opening levels. Seeing more offshore demand in the secondary market to close the week

Bills – The CBN in attempt to mop up a significant portion of the liquidity in market came out to offer a fixed rate non tradable bill maturing 27 Dec 2013 at 12.75% discount on Friday. This effectively killed all secondary market activity as the special auction stifled market. The auction was successful in mopping up about N427billion.

Money Market – OBB and unsecured O/N rates closing last week at 10.15% and 10.25% respectively. Market still liquid.

Indicative Currency Exchange Rates
Bid        Offer

EURUSD          1.2996       1.3006
GBPUSD          1.5220        1.5230
USDJPY            94.67         95.07
USDCHF          0.9396       0.9416
GBPEUR          1.1711          1.1721
USDZAR           9.2317       9.3317
USDNGN          157.70       158.45
JPYNGN           1.6658       1.7158
CHFNGN          167.84       171.84
EURNGN          204.95      208.95
GBPNGN           240.02     244.02
ZARNGN           17.08         19.08

West Texas Intermediate oil rose a second day after Cyprus agreed on an international bailout, easing concern Europe’s debt crisis will worsen. WTI for May delivery rose as much as 54 cents to $94.25 a barrel in electronic trading on the New York Mercantile Exchange and was at $94.17
at 2:41 p.m. Singapore time.

Interest rates
NIBOR (%)                              LIBOR (%)

O/N               10.7500                 USD 1 month             0.2042
7 Day             11.1250                  USD 2 month             0.2435
30 Day          11.5417                   USD 3 month             0.2846
60 Day          11.9583                  USD 4 month            0.3336
90 Day          12.3333                  USD 6 month            0.4479
USD 12 month            0.7375
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.

Hi               Low            Close       Prev.Close
        156.65/75    157.88/98   158.20/30   158.80/90

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