A Review of the Nigerian Energy Industry

Financial market update

02 April 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: A Turkish diplomat, Mr. Mustafa Sever, last week Wednesday expressed optimism that his country’s volume of trade with Nigeria would triple in the next five years. Sever, Deputy Minister of Economy of the Republic of Turkey, made this prediction at the opening of the ECOWAS-Turkey Exports Products Exhibition in Lagos. “I believe the trading between Nigeria and Turkey, which is currently around $1.5 billion, will increase to five billion dollars in the next five years. “Both nations’ bilateral trade ratio was around $290 million in 2003, while it reached $1.56 billion in 2012,” he said.

EUROPE: European stocks advanced before Cypriot government officials met with representatives of the European Union and the International Monetary Fund to seek easier bailout terms. The Stoxx Europe 600 Index added 0.3 percent to 294.61 at 8:12 a.m. in London. Western European markets were closed on Friday and Monday for the Easter holiday.

INDIA: India’s rupee approached a two-week low after the current-account deficit widened to a record. The shortfall in the broadest measure of trade rose to $32.6 billion in the three months through December from the previous quarter’s $22.6 billion, the central bank said late on March 28. The rupee declined 0.1 percent from March 28 to 54.3450 per dollar as of 9:46 a.m. in Mumbai, according to data compiled by Bloomberg. It touched 54.4650 last week, the lowest level since March 20.

CHINA: China’s March new home prices posted the biggest gain in more than two years as buyers rushed into the market ahead of property curbs by local governments, driving real estate stocks higher. Prices climbed for the 10th month, rising 1.1 percent to 9,998 yuan ($1,610) per square meter (10.76 square feet) from February, SouFun Holdings Ltd., the country’s biggest real estate website owner, said in a statement today after a survey of 100 cities. That’s the biggest increase since January 2011.

Bonds – Offshore interest in the bond market returned on Thursday ahead of the inclusion of Nigerian bonds on the Barclays emerging markets index. Larger ticket sizes being dealt relative to the last six weeks which had seen a lull in markets. Bullish session throughout and expectation is that this is likely to start the week after the holidays.

Bills – Quiet session on Thursday to close last week, rates adjusting upward across most of the curve, to mirror sentiment at the recent OMO and primary auctions.

Money Market – OBB and unsecured O/N rates closing last week at 10.15% and 10.20% respectively. Market still liquid.

Indicative Currency Exchange Rates
Bid            Offer

EURUSD          1.2847         1.2857
GBPUSD          1.5221          1.5231
USDJPY            92.88          93.28
USDCHF          0.9468        0.9488
GBPEUR           1.1846         1.1856
USDZAR          9.1825          9.2825
USDNGN         158.00         158.75
JPYNGN          1.7011           1.7511
CHFNGN         166.88         170.88
EURNGN        202.98         206.98
GBPNGN         240.49         244.49
ZARNGN         17.21             19.21

West Texas Intermediate crude slid for a second day amid speculation that U.S. inventories climbed to the highest level in more than 22 years. WTI for May delivery declined as much as 45 cents to $96.62 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.81 at 3:23 p.m. Singapore time.

Interest rates
NIBOR (%)                    LIBOR (%)

O/N              10.2917       USD 1 month        0.2037
7 Day            10.5417       USD 2 month        0.2430
30 Day         10.9167       USD 3 month        0.2826
60 Day         11.2500       USD 4 month        0.3306
90 Day         11.5000       USD 6 month        0.4449
USD 12 month       0.7315
Y/Y Consumer Inflation February 2013 :   9.5%
FX Reserves: 20 March 2013 (USD bn)     48.458
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  158.55/65   158.16/26   158.53/63    158.16/26

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