A Review of the Nigerian Energy Industry

Financial market update

Financial-market17 April 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Central Bank of Nigeria, CBN, yesterday, said the country earned N599 billion from crude oil in January, while Federal Government overspent its budget by N178 billion in the same month. The apex bank disclosed this in its economic report for January released yesterday, which shows that total federal revenue in January was 4.1 percent below the budget estimate. The report said: “Federally-collected revenue (gross) in January 2013, at N774.8 billion, was below the provisional monthly budget estimate by 4.1 percent, but exceeded the receipt at end December 2012 by 1.8 percent. “The decline relative to provisional monthly budget estimate was attributed to the fall in non-oil revenue during the review period.’’

EUROPE: European stocks dropped for a third day before a report that may show German investor confidence declined. The Stoxx Europe 600 Index fell 0.4 percent to 289.18 at 8:07 a.m. in London.

INDIA: India’s rupee strengthened the most in a week on optimism falling prices of crude oil and gold will help rein in a record current-account deficit. Brent crude fell below $100 a barrel for the first time since July amid signs global economic growth may slow, curbing fuel demand, while gold swung between gains and losses after the biggest bear market decline since 1983. The currency advanced 0.3 percent to 54.4512 per dollar as of 10:02 a.m. in Mumbai, the biggest gain since April 8, according to data compiled by Bloomberg.

CHINA: China’s stocks rebounded from a three-month low, as property shares jumped on speculation the government won’t impose any more real-estate curbs as economic growth slows and lower oil boosted auto companies and airlines. The Shanghai Composite Index rose 0.6 percent to 2,194.85 at the close, erasing a loss of as much as 0.7 percent.

Bonds – Ahead of the auction yields up slightly across the 17s and 19s intraday yesterday, the 22s seemed to be pulling lower and this might be an indication of the demand we might see into the auction.

Bills – An active trading day on Monday with rates volatile intraday. closing levels don’t tell the story as rates closed largely flat across most of the traded maturities.

Money Market – OBB and unsecured O/N rates opening the week at 11.50% and 11.75%. Market is fairly liquid opening about N94billion long yesterday. OMO maturity this week expected to come in and keep market liquid.

CBN WDAS AUCTION- CBN offered $300m and sold $232.4m. Marginal rate at 155.75 naira with 17 banks participating.

Indicative Currency Exchange Rates
Bid        Offer

EURUSD       1.3045      1.3055
GBPUSD        1.5299      1.5309
USDJPY         97.75          98.15
USDCHF        0.9311      0.9331
GBPEUR        1.1725       1.1735
USDZAR        9.1926      9.2926
USDNGN       157.50      158.25
JPYNGN        1.6113       1.6613
CHFNGN       169.15       173.15
EURNGN        205.46     209.46
GBPNGN        240.96     244.96
ZARNGN        17.13         19.13

Interest rates
NIBOR (%)                    LIBOR (%)

O/N              12.4167         USD 1 month        0.1997
7 Day            12.6250        USD 2 month        0.2403
30 Day         12.9167         USD 3 month        0.2776
60 Day         13.1250         USD 4 month        0.3231
90 Day         13.3750         USD 6 month        0.4379
USD 12 month       0.7190
Y/Y Consumer Inflation February 2013 :     9.5%
FX Reserves: 10 April 2013 (USD bn)           48.699
MPR                                                                      12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

Hi             Low           Close          Prev.Close
     158.25/35    157.90/00   158.00/10    157.85/95

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