A Review of the Nigerian Energy Industry

Financial market products & services update

Financial markets 127 August 2014, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: The Deputy Governor (Financial System Stability), Central Bank of Nigeria(CBN), Dr. Kingsley Moghalu yesterday restated the central bank’s commitment to meeting the target of attaining 80 per cent financial inclusion among the country’s adult population by 2020. Moghalu made the remark at a consumer sensitisation forum. According to him, the target was in line with the Maya declaration to reduce the financial exclusion rate in Nigeria from 46.3 per cent in 2010 to 20 percent per cent by 2020. He disclosed that a significant component of economic transactions in Nigeria were not captured in the formal financial system, adding that it was in view of this, that various intervention measures were put in place by the CBN to facilitate accessibility of financial services.

FIXED INCOME: Trading in the T-bill market was relatively quiet as yields on a host of maturities closed flat. Nonetheless, marginal buying was still recorded across a few bills particularly at the shorter end of the curve. Bearish sentiments persisted in the bond market as traders took further profit on investments. Selling pressure was maintained on the 14.20% FGN 14-MAR- 2024.

FX: Market opened yesterday to word of inflow from oil companies, on the back of which the pair opened at 161.70, over 30 points lower than previous close. Market ended up closing at 162.10/20.

USA: U.S. consumer confidence rose in August to its highest level since October 2007 on improved feelings about the current state of the economy, according to a private sector report released on Tuesday. The report said its index of consumer attitudes rose to 92.4 from a downwardly revised 90.3 the month before. July’s reading was originally reported as 90.9.

COMMODITIES: Brent was steady in London. Brent for October settlement was 33 cents higher at $102.83 a barrel on the London-based ICE Futures Europe exchange.

EUROPE: Italy must lower its output growth forecast, its economy minister said, a move which could bring the government into line with most economists who expect little or no growth for the euro zone’s third-largest economy this year. “We must revise the GDP (gross domestic product) growth forecast to the downside,” Pier Carlo Padoan said in an interview. He added that the government of Prime Minister Matteo Renzi predicted in April that Italy, which unexpectedly fell back into recession in the second quarter, would see 0.8 percent growth in 2014.

Macro Economic Indicators
Inflation rate (YoY) for July. 2014                     8.30%
Monetary Policy Rate current                             12.00%
FX Reserves (Bn $) as at August 22nd 2014    39.582

Money Market Highlights

O/N                              11.2500
30 Day                         12.3322
90 Day                         12.2476
180 Day                       14.1539
USD 1 Month               0.1560
USD 2 Months             0.1968
USD 3 Months             0.2381
USD 6 Months             0.3299
USD 12 Months           0.5646

Benchmark Yields
Tenor          Maturity        Yield

91d                 20-Nov-14        9.30
182d               05-Mar-15        11.17
364d              06-Aug-15        11.35
2y                   16-Aug-16         11.36
3y                   31-Aug-17         11.33
5y                   29-Jun-19        11.40

Indicative Currency Exchange Rates
Bid           Offer

USDNGN    161.73        162.43
EURUSD     1.3084      1.3286
GBPUSD      1.6468      1.6671
USDJPY       103.88      103.92
USDCHF      0.9109     0.9210
GBPEUR      1.2465      1.2669
USDZAR     10.5476    10.7570
JPYNGN       1.5093      1.6107
CHFNGN      176.09      177.82
EURNGN      213.02      214.38
GBPNGN      267.85      269.27
ZARNGN       14.30         16.13

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