A Review of the Nigerian Energy Industry

Financial market update

Financial-markets314 May 2013, Sweetcrude, Lagos – Local and international financial market services update.
NIGERIA: The Federal Government earned N179.5 billion from the non-oil sector of the economy in the first quarter (January to March) of 2013. This is contained in a statement issued on Monday in Abuja by Yemi Kolapo, the Senior Special Assistant, Corporate Communications to Olusegun Aganga, the Minister of Industry, Trade and Investment. The statement said that the Central Bank of Nigeria, CBN, revealed this in its Economic Report for the First Quarter 2013. It noted that the figure represented an increase of 15.1 and 9.3 per cent over the preceding and corresponding quarter in 2012.

EUROPE: European stocks fluctuated before a German investor confidence report. The Stoxx Europe 600 Index fell less than 0.1 percent at 8:14 a.m. in London and Standard & Poor’s 500 Index futures were unchanged. Data is forecast to show German investor confidence rose this month, while Spain, Greece and the U.K. are due to sell debt today.

INDIA: Indian inflation eased to a 41-month low in April, giving the central bank room to extend monetary easing and support growth in Asia’s third-biggest economy. The wholesale-price index rose 4.89 percent from a year earlier, after climbing 5.96 percent in March, the Commerce Ministry said in a statement in New Delhi today.

CHINA: China’s stocks fell the most in three weeks amid lower growth forecasts for the economy and concerns over the government introducing more property restrictions to limit gains in housing prices. The Shanghai Composite Index fell 1.1 percent to 2,217.01 at the close, the most since April 23.

Bonds – Bearish to open the week in the run up to the bond auction on Wednesday. Yields up an average 10bps across the curve on Monday.

Bills – The Central Bank was out on Monday to offer OMO bills in a bid to further squeeze liquidity. They sold N133.85billion against an offer of N80billion in 164 and 178 day bills at 12.30% and 12.35% respectively. The secondary market was volatile in trading yesterday, dipping across most parts of the curve. Rates up in general across most of the secondary market in reaction to the OMO auctions.

Money Market – OBB and unsecured O/N rates up 75bps on Monday from Friday’s close to 12.75% & 13.00% respectively as liquidity levels drop.

CBN WDAS AUCTION- CBN offered $300m and sold $293.9m. Marginal rate at 155.74 naira compared with 155.75 naira at previous sale on May 8.

Indicative Currency Exchange Rates
                       Bid        Offer
EURUSD     1.2999      1.3009
GBPUSD     1.5301       1.5311
USDJPY      101.39       101.79
USDCHF     0.9537      0.9557
GBPEUR     1.1775       1.1785
USDZAR     9.1782      9.2782
USDNGN   156.95       157.70
JPYNGN    1.5480       1.5980
CHFNGN   164.57       168.57
EURNGN   204.02     208.02
GBPNGN    240.15     244.15
ZARNGN    17.10        19.10


West Texas Intermediate rebounded from a three-day slump, narrowing its discount to London’s Brent crude. Government data tomorrow may show U.S. stockpiles climbed while gasoline supplies shrank. WTI for June delivery rose as much as 49 cents to $95.66 a barrel in electronic trading on the New York Mercantile Exchange and was at $95.55 a barrel at 2:39 p.m. Singapore time.

Interest rates
NIBOR (%)                  LIBOR (%)

O/N              13.0000     USD 1 month      0.1992
7 Day            13.2917       USD 2 month     0.2360
30 Day         13.4583      USD 3 month     0.2751
60 Day         13.7083      USD 4 month     0.3176
90 Day         14.0000     USD 6 month     0.4264
USD 12 month    0.7011
Y/Y Consumer Inflation March 2013 :    8.6%
FX Reserves: 10 May 2013 (USD bn)      48.601
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    157.60/70   156.26/36    157.35/45   157.35/45

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