A Review of the Nigerian Energy Industry

Financial market update

Financial markets05 July 2013, Sweetcrude, Lagos – Local and international financial market products and services update.
NIGERIA: Nigerian President Goodluck Jonathan will take a group of state governors and key ministers to China next week, seeking to strengthen ties with the Asian nation in everything from power production to bond buying. The leader of Africa’s biggest oil producer will hold talks with President Xi Jinping and officials from Huawei Technologies Co., ZTE Corp., and China Petroleum & Chemical Corp. during a five-day trip starting on July 9, the Abuja-based presidency said in an e-mailed statement. Trade between Nigeria and China is projected to reach $10 billion by the end of the year from $2 billion in 2005, according to the West African nation’s Trade and Investment Ministry. Chinese companies and investors will attend a forum with Nigerian counterparts during the trip where “matchmaking” for potential partnerships will be made, Aganga, the trade minister, said in a separate interview on July 3.

EUROPE: European central bankers broke new ground to protect their economies from a U.S.-led surge in bond yields, indicating they will keep benchmark interest rates low for longer than investors bet. With rising market borrowing costs posing fresh threats to weak expansions, Bank of England Governor Mark Carney and European Central Bank President Mario Draghi gave greater clarity over their monetary policy thinking yesterday in the hope financial markets will correct.

CHINA: China suspended the release of industry-specific data from a monthly survey of manufacturing purchasing managers, with an official saying there’s limited time to analyze the large volume of responses. “We now have 3,000 samples in the survey, and from a technical point of view, time is very limited — there are many industries, you know,” Cai Jin, vice president of the China Federation of Logistics & Purchasing, which compiles the data with the National Bureau of Statistics, told reporters yesterday in Beijing.

BONDS: Another flat session across the curve, yields stable after a light selloff early in the week ahead of the US data release of nonfarm payroll today.

BILLS: CBN finally conducted a special auction today having refused to issue OMO bills earlier in the week due to weak demand and high bid rates. A total of N92.45 billion was issued at 14.20% yield. Calm session expected today to end the week.

MONEY MARKET: Cash market remain liquid, N143.88 billion was repaid into the system via a maturing t-bill. OBB and ON rate close at 10.15% and 10.25% respectively.

COMMODITIES: WTI crude traded near the highest price in 14 months and was poised for a second weekly gain on speculation that demand will increase in the U.S., the world’s largest oil consumer. Futures were little changed in New York after closing on July 3 at $101.24 a barrel, the highest since May 3 last year.

Indicative Currency Exchange Rates
Bid            Offer

EURUSD          1.2933          1.2943
GBPUSD           1.5166          1.5176
USDJPY             99.81           100.21
USDCHF          0.9501          0.9521
GBPEUR           1.1810           1.1820
USDZAR           9.8900         9.9900
USDNGN          159.70          160.45
JPYNGN           1.6000          1.6500
CHFNGN          168.09          172.09
EURNGN          206.54         210.54
GBPNGN           242.20        246.20
ZARNGN           16.15             18.15

Interest rates
NIBOR (%)                        LIBOR (%)

O/N              10.2500           USD 1 month        0.1952
7 Day            10.6667           USD 2 month        0.2379
30 Day         10.9167            USD 3 month        0.2709
60 Day         11.1667             USD 4 month        0.3126
90 Day         11.4167             USD 6 month        0.4144
USD 12 month       0.6915
Y/Y Consumer Inflation April 2013 :                9.1%
FX Reserves: 06 Junel2013 (USD bn)              48.423
MPR                                                                        12.00%
Source: FMD and CBN
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

Hi            Low           Close        Prev.Close
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