A Review of the Nigerian Energy Industry

Financial market products & services update

Financial markets
Financial markets

08 May 2015, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: Nigeria raised 150.60 billion naira ($756.78 million) in Treasury bills, with yields mixed compared with the previous sale last month, the central bank said on Thursday. The yield on the 3-month bill was stable at 10.09 percent, the same as at the April 22, auction. The central bank sold N45.17 billion in the 3-month paper. A total of N23.43 billion was sold in the six months paper at 12.89 percent, higher than the 12.80 percent yield at the last auction, while 82 billion worth of the one-year paper was sold at 13.39 percent against 12.99 percent last month.

FIXED INCOME: The trading session had the bears all out to play, as both tbills and bonds were better offered across. Tbills yields inched up about 16bps while bond did about 10bps up. 2022s and 2024s continue to maintain the large chunk of liquidity in the bonds. CBN sold NGN114bn of 252day OMO bills at 14% (15.50%), this was the main reason for the selloff in tbills. O/N still about 9% as money market liquidity still over NGN500bn even after the OMO auction.

FX: Nothing is changed regarding CB’s daily special auction; intervention rate maintained at $/NGN 197.00.

EUROPE: Shares on the London stock market have risen sharply, led by banks and property firms. The FTSE 100 gained more than 1.6% in early trading, as investors digested UK election results suggesting David Cameron will remain as prime minister. The BBC forecasts that the Conservatives will be able to command a slender majority. Meanwhile, the pound jumped nearly 2% to $1.55 against the dollar, before pulling back.

CHINA: China’s imports and exports contracted again in April in a new sign of economic weakness, adding to pressure on Beijing to roll out more stimulus measures to avert a sharper economic slowdown. Imports fell by a bigger-than-expected 16.2 per cent over a year earlier to US$176.3 billion following March’s 12 per cent decline. Exports fell 6.4 per cent to US$142.1 billion, adding to the previous month’s 15 per cent decline.

COMMODITIES: The barrel of the American benchmark for the light crude oil is extending the drop from recent highs beyond $62.00/bbl on Thursday. The barrel of WTI is losing 1.35% at $59.58 with the immediate support at $59.09 (low May 7) ahead of $58.63 (low May 5) and finally $58.37 (low Apr.30).

Macro Economic Indicators
Inflation rate (YoY) for Nov., 2014                   8.50%
Monetary Policy Rate current                          13.00%
FX Reserve (Bn $) as at January 09 2015     29.670

Money Market Highlights
O/N                                   9.5417
30 Days                           13.0188
90 Days                           14.2552
180 Days                         15.7501

USD 1 Month                 0.1815
USD 2 Months               0.2280
USD 3 Months               0.2789
USD 6 Months               0.4148
USD 12 Months             0.7361

Benchmark Yields
Tenor     Maturity     Yield (%)
91d           06-Aug-15         10.32
182d         15-Oct-15          12.10
364d        21-Apr-15          15.06
2yr            27-Apr-17         13.81
3yr            29-May-19       13.74
5yr            13-Feb-20        13.74

Indicative Currency Exchange Rates
                          Bid       Offer
USDNG         196.87      199.50
EURUSD      1.1131        1.1333
GBPUSD       1.5367      1.5569
USDJPY        120.06      120.09
USDCHF       0.91705   0.9272
GBPEUR       1.3669      1.3873
USDZAR      11.9201     12.1235
JPYNGN      165.7297  165.8303
CHFNGN       214.59      216.28
EURNGN        N/A         N/A
GBPNGN         N/A         N/A
ZARNGN         N/A         N/A

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