A Review of the Nigerian Energy Industry

Financial market products & services update

*Financial markets.

07 March 2018, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: The Nigerian National Petroleum Corporation (NNPC) Tuesday said it recorded a total export receipt worth $476.25 million from its sale of crude oil for Nigeria in December 2017.

NNPC said in a statement from its Group General Manager, Public Affairs, Mr. Ndu Ughamadu, in Abuja that the record of sales was contained in its financial and operations report for the period of December 2017.

The statement indicated the December earning was about $275.14 million higher than the $201.11 million oil export sales that NNPC recorded in November 2017.

FX: We continue to see decent offers in the I&E window, in the tight range of $/N 359.00 – 361.00. We believe a good portion of FX flows into the window is tracking the Central Bank OMO auctions. However, yesterday’s turnover was just shy of $199.36m.

FIXED INCOME: Better sellers seen yesterday across the bond curve despite some intermittent buying. Overall, not much to spur market and this same sentiment caught up with t-bills. Bill market was mostly quiet with pockets of interest across the curve.

The CBN issued another OMO and sold a total of N67.7bn of the 11th Oct 2018 bill – stop rate remains unchanged at 14.4% discount.

We expect more of the same today.

CHINA: The world’s biggest labor market will soon get its first regularly updated monthly jobless rate similar to closely-watched gauges in other major economies like the U.S. and Europe.

Monthly updates of China’s survey-based urban unemployment rate will be released from April, the country’s National Bureau of Statistics said Wednesday in response to a Bloomberg News query. Until now, the only regular official unemployment rate has been a quarterly gauge of urban joblessness that hasn’t deviated much from around 4% over the past 15 years, despite economic shifts.

U.S: Gary Cohn is resigning as President Donald Trump’s top economic adviser, leaving his post as the administration prepares to impose steep tariffs on steel and aluminum that Cohn has opposed.

Cohn didn’t mention the dispute in a statement distributed by the White House, saying only that “it has been an honor to serve my country and enact pro-growth economic policies to benefit the American people, in particular, the passage of historic tax reform.”

COMMODITIES: Oil fell for the first time in four sessions on concern over an expansion in U.S. crude inventories and the risk of an intensifying global trade war sparked by President Donald Trump.

Futures in New York dropped as much as 1.2%. The American Petroleum Institute was said to report U.S. crude inventories rose by about 5.7 million barrels. Broader financial markets were also rattled after Gary Cohn said he’ll resign as economic adviser to the White House, while the Trump administration is said to be considering clamping down on Chinese investments in the U.S.

Macro Economic Indicators
Inflation rate (Y-o-Y) for January 2017           15.13%
Monetary Policy Rate current                          14.00%
FX Reserves (Moving Avg Bn $) as at March 03, 2018,     42,756

Money Market Highlights

O/N                        14.3125
30 Day                   15.6242
90 Day                   16.3555
180 Day                 18.3514
USD 1 Month        1.70170
USD 2 Months      1.83064
USD 3 Months      2.01719
USD 6 Months      2.22375
USD 12 Months    1.72400

Benchmark Yields
Tenor       Maturity       Yield (%)

91d           07-Jun-18      14.88
182d         06-Sep-18     15.36
364d         14-Feb-19     15.02
2y             13-Feb-20     13.85
3y             15-Jul-21      13.67
5y             27-Jan-22     13.58

Indicative Currency Exchange Rates
Bid      Offer

USDNGN (I&E)     359.00    360.00
EURUSD                1.2310    1.2513
GBPUSD                1.3777    1.3979
USDJPY                 105.72    105.75
GBPEUR                1.1080   1.1283
USDZAR               11.7227  11.9259
EURNGN               446.23    447.60
GBPNGN               499.04    500.44

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