A Review of the Nigerian Energy Industry

Financial market products & services update

Financial markets.
Financial markets.

04 September 2015, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: Documents submitted by President Muhammadu Buhari to the Code of Conduct Bureau (CCB) showed that the president had less than N30 million in his account as at May 29 when he was sworn in as president. As at the same date, his deputy, Prof. Yemi Osinbajo (SAN), had N94 million, $900,000 as well £19,000 in his accounts. The duo had promptly filled and submitted their assets declaration forms to the CCB before they were sworn in. But the details were not made known to the public. The information contained in the documents was yesterday, confirmed by the Senior Special Assistant to the President on Media and Publicity, Mr. Garba Shehu

EU: Mario To the casual observer, it looks like Mario Draghi’s quantitative easing isn’t working. Economic forecasts unveiled by the European Central Bank president on Thursday were even weaker than those in March, just before the 1.1 trillion-euro ($1.2 trillion) bond-buying plan started. Yet while cooling global trade and slumping oil prices do threaten to set the inflation counter back to zero, the slow burn of stimulus plus the temporary nature of the external shocks could still see Draghi’s stance vindicated. Incoming data show that the 19-nation euro-area economy is in better shape than it has been for years, and the fact that recovery isn’t yet translating into sturdier price growth is a problem that’s affecting every major global central bank.

INDIA: India’s benchmark stock index headed for its longest streak of weekly losses since October as investors await Friday’s U.S. payrolls data. The S&P BSE Sensex fell 1.9 percent to 25,275.50, poised for a fourth weekly retreat and its lowest close since July 2014. The August nonfarm-payrolls report may add fuel to the debate over whether the U.S. economy is strong enough for the Federal Reserve’s first interest-rate increase since 2006. Overseas investors sold a net $231 million of Indian stocks on Sept. 2, paring this year’s inflows to $4.1billion.

FX: No significant change in the market as the two way quote FX market remains shut. Special auction funds still maintained at 196.00/197.00.

FIXED INCOME: Money market was long N306.49bn following N115bn OMO maturity. The maturity alongside CBN refund for FX auction gave O/N rates some support. O/N rate closed at 9% from 11% previous day. Bond market had started out super quiet and became well offered by about midday as some offshore accounts offloaded risk ahead of payrolls. Jan 2022s was the weakest link for yesterday as a good chunk of the offshore interest was in this paper. Theme in bill market remains unchanged – decent buyers of short dated paper.

COMMODITIES: Oil’s Oil pared a second weekly advance amid a persistent global glut while Venezuela and Russia agreed to a plan to address the slide in prices. OPEC member Venezuela and Russia, the largest oil exporter outside the group, reached an agreement on “initiatives” to bring stability to the market, Venezuelan President Nicolas Maduro said, according to the nation’s state-run news agency AVN. Brent closed at $50.68/bbl yesterday.

Macro Economic Indicators
Inflation rate (YoY) for Nov., 2014                   9.20%
Monetary Policy Rate current                          13.00%
FX Reserve (Bn $) as at January 09 2015     31.302

Money Market Highlights
O/N                                   9.2500
30 Days                           15.5884
90 Days                           16.6160
180 Days                         18.0128

USD 1 Month                 0.2043
USD 2 Months               0.2720
USD 3 Months               0.3335
USD 6 Months               0.5390
USD 12 Months             0.8536

Benchmark Yields
Tenor     Maturity     Yield (%)
91d           03-Dec-15          11.31
182d         03-Mar-16        15.36
364d        04-Aug-16         15.97
2yr            27-Apr-17         15.81
3yr            29-Jun-19        15.96
5yr            13-Feb-20        15.87

Indicative Currency Exchange Rates
                         Bid         Offer
USDNG         197.00       199.50
EURUSD       1.1028        1.1230
GBPUSD       1.5139         1.5341
USDJPY        119.53         119.56
USDCHF       0.96845    0.9786
GBPEUR       1.3592        1.3796
USDZAR      13.5446      13.7480
JPYNGN      161.8497    161.9503
CHFNGN       204.99      206.68
EURNGN       217.24       219.60
GBPNGN        309.40     310.79
ZARNGN          14.69      16.61

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