A Review of the Nigerian Energy Industry

Financial market update

Financial-market27 June 2013, Sweetcrude, Lagos – Local and international financial market products and services update.
NIGERIA: The Nigerian Government confirmed its intention to privatise ten power stations across the country as part of its effort to guarantee an effective and sustainable power supply for the people of Nigeria. This unique investment opportunity was announced yesterday at an Investor Relations Event held The Sofitel Hotel, New York City.

The power stations are located in Abia State (450MW), Edo State (451MW), Cross River State (562MW), Imo State (338MW), Bayelsa State (225MW), Kogi State (434MW), Delta State (451MW) Ogun Sate (676MW), River State (225MW) and Ondo State (451MW)

EUROPE: European Central Bank policy makers including President Mario Draghi said they’ll maintain a loose monetary stance for as long as needed, while urging euro area governments to cut their deficits and boost investment. The ECB’s monetary policy “will stay accommodative for the foreseeable future,” Draghi said today in a speech at the French National Assembly in Paris. “We have an open mind about all other possible instruments that we may consider proper to adopt.” An exit is “very distant,” he said at a press conference.

CHINA: Investors have been bolstered by central banks’ commitments to take steps to aid the recovery of the global economy and to stimulate the credit markets. The People’s Bank of China said in a statement yesterday that it has provided financing to some financial institutions to stabilize interbank lending rates and that it will use short-term liquidity operations to ensure steady markets. “China is still a big driver of global economic growth,”Jon Sablowsky, head of trading at Brownstone Investment Group LLC in New York, said in a telephone interview.

BONDS: Another relatively stable session with yields up another 6bps on average today. Market continues to trade a very tight range and for a second day ultimately closing higher.

BILLS: Ahead of the T-bill auction results the market trend turned yesterday with some demand feeding into markets yesterday, with the CBN failing to sell any OMO this week some players speculating that the auction might close lower than the secondary market levels decided to try and take out the higher yields. The short dates were down 40bps while the six months went down 30bps. Not much liquidity in the longer dates but down about 10bps on average.

MONEY MARKET: OBB and unsecured O/N rates easy yesterday at 10.15% and 10.25% respectively. ”

WTI oil rose for a third day, advancing with equities on speculation the Federal Reserve will maintain stimulus after a report showed slower- than-estimated economic growth. WTI crude for August delivery rose 18 cents to $95.50 a barrel on the New York Mercantile Exchange, the highest settlement since June 19. The contract dropped as low as $93.68.

COMMODTIES: WTI oil rose for a third day, advancing with equities on speculation the Federal Reserve will maintain stimulus after a report showed slower- than-estimated economic growth. WTI crude for August delivery rose 18 cents to $95.50 a barrel on the New York Mercantile Exchange, the highest settlement since June 19. The contract dropped as low as $93.68.

Indicative Currency Exchange Rates
Bid         Offer

EURUSD    1.3032      1.3042
GBPUSD     1.5288      1.5298
USDJPY       98.10        98.50
USDCHF     0.9432     0.9452
GBPEUR     1.1820      1.1830
USDZAR     10.1100    10.2100
USDNGN    160.90     161.65
JPYNGN     1.6402      1.6902
CHFNGN    170.59      174.59
EURNGN    209.68     213.68
GBPNGN    245.98      249.98
ZARNGN      15.91         17.91

Commodities
WTI oil rose for a third day, advancing with equities on speculation the Federal Reserve will maintain stimulus after a report showed slower- than-estimated economic growth. WTI crude for August delivery rose 18 cents to $95.50 a barrel on
the New York Mercantile Exchange, the highest settlement since June 19. The contract dropped as low as $93.68.

Interest Rates
NIBOR (%)                      LIBOR (%)

O/N              10.3750          USD 1 month        0.1940
7 Day            10.8500         USD 2 month        0.2358
30 Day         11.6871           USD 3 month        0.2761
60 Day         11.9000          USD 4 month        0.3126
90 Day         12.1667           USD 6 month       0.4234
USD 12 month     0.7011
Y/Y Consumer Inflation April 2013 :             9.1%
FX Reserves: 06 Junel2013 (USD bn)          48.423
MPR                                                                     12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

Fx
Hi             Low             Close         Prev.Close
USD/NGN
     161.40/50    160.45/55   161.40/50    160.45/55

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