A Review of the Nigerian Energy Industry

Financial market update

finance31 May 2013, Sweetcrude, Lagos – Local and international financial market products and services update.
NIGERIA: Federal government said about N4.2 trillion has been saved from decrease in Nigeria’s imports since 2005. Minister of Trade and Investment Olusegun Aganga disclosed this to State House correspondents in Abuja on Tuesday after a meeting presided over by Vice President Mohammed Namadi Sambo. Aganga, who said the meeting, was about Onigbola Cement Factory, a joint venture between Nigeria and Benin Republic, said the savings had helped increase the nation’s external reserve. He said government’s refusal to issue any import licence for cement in 2012 had saved the nation about N300 billion.

EUROPE: German Chancellor Angela Merkel pressed France to pursue an economic overhaul in return for getting more time to cut its budget deficit, a task French President Francois Hollande said nobody will dictate to him. The leaders of Europe’s two biggest economies, speaking after talks in Paris yesterday, said they agreed that France has to make further efforts to match Germany’s higher competitiveness. They differed on how much leeway France had to go about it.

INDIA: India’s economy expanded less than 5 percent for a second straight quarter as Prime Minister Manmohan Singh struggled to revive investment, adding pressure for further government policy changes to spur growth. Gross domestic product rose 4.8 percent in January to March from a year earlier, up from a revised 4.7% percent the previous quarter, the Central Statistical Office said in New Dehli today.

CHINA: China’s stocks fell, paring the benchmark index’s biggest monthly gain this year, before tomorrow’s manufacturing report. The Shanghai Composite Index slid 0.7 percent to 2,300.60 at the close, paring this week’s gain to 0.5 percent.

Bonds – A volatile session in markets yesterday as some profit taking pushed yields up as market opened on Thursday. Most of the focus of the selling was on the Jan 22s which close up 24bps on the day. Offshore participants invested heavily on the back of the inclusion of Nigerian govies on the JPM EM index.

Bills – Yields went up across the maturities on Thursday with the market selling off lightly as the CBN came out to offer OMO bills pushing the rates up in market.

Money Market – OBB and unsecured O/N rates closing yesterday at 10.75% and 11.00%. The CBN came out to offer N150billion in OMO bills today selling N123billion 70 & 133 day bills.

Indicative Currency Exchange Rates
Bid        Offer

EURUSD        1.3028      1.3038
GBPUSD        1.5202       1.5212
USDJPY         100.59       100.99
USDCHF       0.9532       0.9552
GBPEUR        1.1667       1.1677
USDZAR       10.1770     10.2770
USDNGN      157.90       158.65
JPYNGN       1.5697       1.6197
CHFNGN      165.65      169.65
EURNGN      205.71      209.71
GBPNGN      240.04     244.04
ZARNGN       15.52        17.52

West Texas Intermediate crude headed for a third weekly decline after U.S. stockpiles climbed to the most in more than 80 years. WTI for July delivery was at $93.41 a barrel, down 20 cents, in electronic trading on the New York Mercantile Exchange at 2:57 p.m. Singapore time.

Interest rates
NIBOR (%)                   LIBOR (%)

O/N             11.3750        USD 1 month        0.1937
7 Day           11.7083        USD 2 month       0.2305
30 Day        11.9833        USD 3 month        0.2746
60 Day        12.1667        USD 4 month        0.3171
90 Day        12.3750       USD 6 month        0.4162
USD 12 month       0.6880
Y/Y Consumer Inflation April 2013 :           9.1%
FX Reserves: 28 May 2013 (USD bn)        48.418
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  158.42/52    158.10/20   158.32/42   158.05/15

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