A Review of the Nigerian Energy Industry

Financial market update

Financial markets27 May 2013, Sweetcrude, Lagos – Local and international financiasl market products and services update.
NIGERIA: A new tariff regime aimed at increasing local manufacturers’ capacity and boost investments in the industrial sector is underway, The Minister of Trade and Industry, Mr Olusegun Aganga, said last week Thursday. The statement said as part of efforts to achieve the goal, Aganga inaugurated a 12-member committee to work out appropriate tariffs to support the implementation of the country’s industrial policies. The aim is to reposition the manufacturing sector and increase its contribution to the Gross Domestic Product (GDP) from its current four per cent to 10 per cent over the next four years.

EUROPE: European stocks rose as Chinese Premier Li Keqiang said his country will rely on Germany to lead the euro out of its crisis and boost the global economy as European leaders begin to tackle soaring unemployment after three years of budget cuts. The Stoxx Europe 600 Index climbed 0.3 percent to 304.28 at 8:08 a.m. London time.

INDIA: Indian stocks advanced the most in about two weeks after last week’s drop in the benchmark index lured some investors. The S&P BSE Sensex rose 0.8 percent to 19,859.33 at 12:21 p.m. in Mumbai.

CHINA: China’s President Xi Jinping signaled a tolerance for slower expansion to avoid environmental degradation as policy makers outlined plans for the private sector to take a bigger role in boosting growth. The country won’t sacrifice the environment to ensure short-term growth, Xi said during a study session of the Communist Party’s top leadership on May 24. His comments follow a statement issued on the same day that the State Council, which is chaired by Premier Li Keqiang, approved measures including tax reform to revamp the economy.

Bonds – A short session as the main trading system Reuters had an unexpected shutdown on Friday. Yields were trending up for a second day after the rally on Wednesday.

Bills – The CBN came out again on Friday to offer N110bio in 181 and 195 days bills to try and mop up the excess liquidity in the market. Selling N130billion only on the 195 day bill. The secondary market was bullish across all the maturities as the market was liquid with cash and interest rates are down.

Money Market – OBB and unsecured O/N rates stable at 10.25% and 10.50%.Markets still liquid last week Friday.

Indicative Currency Exchange Rates
Bid           Offer

EURUSD          1.2942        1.2952
GBPUSD           1.5144        1.5154
USDJPY           100.96        101.36
USDCHF          0.9595        0.9615
GBPEUR          1.1700         1.1710
USDZAR          9.6052        9.7052
USDNGN         157.50         158.25
JPYNGN          1.5600         1.6100
CHFNGN        164.15          168.15
EURNGN       203.84         207.84
GBPNGN        238.52         242.52
ZARNGN         16.40          18.40

Brent Crude slipped towards $102 per barrel on Monday, extending last week’s 2 percent drop, as a weak economic outlook in a well-supplied market pressured prices.

Interest rates
NIBOR (%)                             LIBOR (%)
O/N               10.5417                 USD 1 month          0.1932
7 Day             11.2083                USD 2 month          0.2305
30 Day          11.6250                 USD 3 month          0.2727
60 Day          12.0417                 USD 4 month         0.3166
90 Day          12.3750                USD 6 month          0.4174
USD 12 month        0.6858
Y/Y Consumer Inflation April 2013 :                      9.1%
FX Reserves: 21 May 2013 (USD bn)                    48.443
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     157.95/05   158.00/10    158.30/40

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