A Review of the Nigerian Energy Industry

Financial market update

Gold bar on a scale30 April 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The federal government has said that it was targeting 10,000 megawatts of electricity by the end of this year given the progress so far made in the installation of power plants across the country. The permanent secretary in the ministry of power, Ambassador Godknows Igali, who disclosed this in Abuja at the weekend assured that with the level of investment government had made in the power sector, power generation and supply would only get better. He said that two Independent Power Projects (IPPs) have attained completion and would soon come on stream.

EUROPE: Euro zone officials on Monday approved the release of €2.8 billion in loans to Greece, the country’s Finance Ministry said, paving the way for the approval of an additional €6 billion installment of aid at a meeting of the currency union’s finance ministers in mid-May. The Greek Parliament late Sunday approved a controversial plan to dismiss 15,000 civil servants by the end of next year as part of a new package of economic measures that the country must enforce in order to receive continued financing from the troika of foreign creditors: the International Monetary Fund, the European Central Bank and the European Commission.

INDIA: The BSE index up 0.77 percent and the broader 50-share NSE index 0.59 percent higher, led by gains in fast moving consumer goods stocks after Unilever’s offer to raise its stake in India’s Hindustan Unilever to up to 75 percent in a deal valued around $5.4 billion.

CHINA: Hong Kong stocks fell, with an index of Chinese companies headed for its biggest drop in a week, as slower growth in Chinese industrial companies’ profits added to signs the world’s No. 2 economy is losing steam. The Hang Seng China Enterprises Index of mainland companies traded in the city declined 1.1 percent to 10,717.37 as of 1:44 p.m. in Hong Kong, headed for its biggest drop since April 23.

Bonds – Relative calm returning to the bond market yesterday, traders remain cautious as no one is adding risk even at good levels above 12.00% yield mark. Yield movement in the bills market closely monitored as this would definitely impact next month’s primary auction closing level.

Bills – CBN came into the market again yesterday for liquidity mop-up, offering ngn100 bio on the 227dy t-bill. Signs of weak demand persists at current market levels as only ngn26.57 bio was sold at a tight range of 12.29% – 12.50%. We expect another OMO auction this week just before the maturity inflow for the week.

Money Market – Cash market remain liquid, OBB and ON rate trading at 10.25% and 10.50% respectively.

CBN WDAS AUCTION- CBN offered and sold $300m. Marginal rate at 155.75 naira unchanged from previous sale on April 24.

Indicative Currency Exchange Rates
Bid            Offer

EURUSD        1.3083        1.3093
GBPUSD         1.5497        1.5507
USDJPY          97.78          98.18
USDCHF         0.9367       0.9387
GBPEUR         1.1846        1.1856
USDZAR         8.9699       9.0699
USDNGN       157.65         158.40
JPYNGN        1.6123         1.6623
CHFNGN       168.30        172.30
EURNGN       206.25       210.25
GBPNGN       244.31        248.31
ZARNGN       17.58          19.58

West Texas Intermediate crude fell from the highest price in almost three weeks, extending a monthly decline, before a report that may show U.S. inventories at the largest in more
than 22 years. WTI for June delivery fell as much as 31 cents to $94.19 a barrel in electronic trading on the New York Mercantile Exchange and was at $94.20 at 2:40 p.m.
Singapore time.

Interest rates
NIBOR (%)                        LIBOR (%)

O/N              10.4583            USD 1 month           0.1982
7 Day            10.7917             USD 2 month           0.2393
30 Day         11.1250             USD 3 month           0.2741
60 Day         11.4167             USD 4 month           0.3201
90 Day         11.6667             USD 6 month           0.4299
USD 12 month          0.7085
Y/Y Consumer Inflation March 2013 :                8.6%
FX Reserves: 17 April 2013 (USD bn)                 48.768
MPR                                                                           12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

Hi                  Low          Close         Prev.Close
      158.90/00      157.75/85   157.80/90     158.72/82

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