A Review of the Nigerian Energy Industry

Financial market update

Financial-markets05 March 2014, Sweetcrude, Lagos – Local and international financial markets products and services update.
NIGERIA: The Minister of Finance, Ngozi Okonjo-Iweala, on Tuesday said that the nation’s economy is not being threatened by its debt profile. Mrs. Okonjo-Iweala said that the country had no debt problem, adding that Nigeria’s debt to Gross Domestic Product, GDP, is 21 per cent. She made this known in Abuja at the inauguration of “Budget 2014 Jam” organised by the Ministry of Finance in collaboration with IBM Technology in Abuja.

FIXED INCOME: Mixed trading witnessed yesterday as market players traded cautiously in anticipation for the T-bills Primary Market Auction of Wednesday. Long dated bills recorded another session of sell-offs as yields climbed by an average of 27bps across the 156D – 352D bill with the greatest impact seen on the 184day paper – which is the 182D paper on offer at the auction today- advancing by 68bps. The 5th June and 4th Sept and 19th Feb bill paper closed at a yield of 12.80%, 13.91% and 14.73% respectively. The bond market continues its quiet session as average yield rose marginally by 2bps to 13.83% as yields advanced across the curve, save for the April 15s which contracted by 3bps.
OBB and ON closed higher at 12.50% and 12.75% respectively from 11.25% and 11.50% as liquidity thins out to about NGN200 billion after the CBN mopped up about NGN62bn at Tuesday’s OMO auction on the 135d paper at a cut off of 13.10%.

COMMODITIES: West Texas Intermediate traded near $103 a barrel after falling the most in two months while Brent was steady in London. WTI for April delivery was at $103.30 a barrel in electronic trading on the New York Mercantile Exchange, down 3 cents, at 3:55 p.m. Singapore time.

EUROPE: European stock-index futures fell, after equities rallied yesterday by the most in eight months, as investors turned their attention from the crisis in Ukraine to economic data from Europe and America. Futures on the Euro Stoxx 50 Index expiring in March dropped 0.3 percent to 3,126 at 7:22 a.m. in London.

CHINA: China set a 7.5 percent target for economic growth in 2014, a pace that may make it more difficult to achieve the leadership’s goals of curbing credit risks and stemming the pollution choking the nation’s biggest cities. The growth target, which is the same as last year’s, will boost market confidence and protect jobs, Premier Li Keqiang told the annual meeting of the legislature in Beijing today.

Macro Economic Indicators
Inflation rate (yoy) for Jan. 2014 8%
Monetary Policy Rate Cut 12%
FX Reserve (Bn $) as at Feb.28 40.116

Money Market Highlights

O/N 12.7500
7 Day 13.0417
30 Day     13.4583
60 Day 13.7917
90 Day     14.1250
USD 1 Month 0.1565
USD 2 Months 0.1965
USD 3 Months 0.2354
USD 6 Months 0.3315
USD 12 Months 0.5520

Benchmark Yields
Tenor Maturity Yields

91d 05-Jun-14 12.80%
182d 04-Sep-14 13.91%
364d 19-Feb-15 14.73%
2y 23-Apr-15 14.19%
4y 31-Aug-17 13.80%
5y 30-May-18 13.80%

Indicative Currency Exchange Rate
Bid Offer

EURUSD 1.3733 1.3743
GBPUSD 1.6680 1.6690
USDJPY 102.30 102.70
USDCHF 0.8870 0.8890
GBPEUR 1.2146 1.2156
USDZAR 10.7523 10.8523
USDNGN 163.48 164.23
JPYNGN 1.5980 1.6480
CHFNGN 184.31 188.31
EURNGN 224.51 228.51
GBPNGN 272.68 276.68
ZARNGN 15.20 17.20

Hi Low Close Prev.Close
164.55/65 163.90/00 164.52/62 163.85/95

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