26 March 2018, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: Kemi Adeosun, minister of Finance, in a statement at the Ogun State Investors forum said that Nigeria has spent N2.5trillion on capital expenditure since the Buhari-led government came into office in 2015 but data from the Central Bank of Nigeria (CBN) which put total expenditure at N1.5 trillion disputes these claims. “We have invested over N2.5trillion in infrastructure between 2015 and 2017. If you move round the country you will see on-going works in roads, power, bridges, railway lines and so on. These are important building blocks for the Nigerian economy,”Adeosun stated.
FIXED INCOME: Quiet end to the week in bonds but still skewed to the sellers. CBN announced an OMO auction on Friday, calming any fears and selling N247.7b of 22 Nov 2018 bills at 14.40% discount (15.92% yield). Following the bond and OMO auction debits, market liquidity will be < N100bn. With no details yet on the FAAC meeting, there may be no other inflows till Thursday’s maturity (N128bn). O/N rate closed at 10%.
FX: Market was offered last week in the I&E window with very low volatility seen on the pair, the resistance was unchanged all through the week at 361.00. The daily average turnover stood at $209.83m, down by 68.71% from $354m the previous week.
U.S.A.: China warned the US it will defend its interests on trade, Chinese state media says after US President Donald Trump backed tariffs on Chinese goods. The comments came in a phone call between China’s vice-premier Liu He and US Treasury Secretary Steven Mnuchin. Mr Trump has announced plans to impose tariffs on up to $60bn (£42.5bn) of Chinese goods, accusing China of intellectual property theft. The move has rattled markets and stoked fears of a trade war. Mr Liu, who is Chinese President Xi Jinping’s top economic adviser, told Mr Mnuchin that Beijing was “ready to defend its national interests” but hoped that “both sides will remain rational and work together”.
E.U.: IMF Managing Director Christine Lagarde urged Europe to pursue further integration, including on spending, saying a closer union of euro-area countries would help counter rising populism and protectionism globally. “A more unified euro area can be a compass to prosperity for the region and a beacon of hope to the world,” Lagarde said in a speech Monday in Berlin. The IMF chief said the euro zone has made progress on a capital-markets and banking union, two areas in which the fund is calling for greater integration. But she also encouraged the currency union’s members to push toward setting up a “central fiscal capacity” that would establish a “rainy-day fund” that members finance through annual contributions.
COMMODITIES: Oil fell, erasing earlier gains, as investors shrugged off concerns over geopolitical risks after Saudi Arabia intercepted ballistic missiles fired by Houthi forces in Yemen. Brent for May settlement dropped as much as 31 cents to $70.14 a barrel the London-based ICE Futures Europe exchange.
Macro Economic Indicators
Inflation rate (Y-o-Y) for February 2017 14.33%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at March 21, 2018, 45.360
Money Market Highlights
NIBOR (%)
O/N 27.1000
30 Day 14.1031
90 Day 15.6933
180 Day 17.3389
LIBOR (%)
USD 1 Month 1.87500
USD 2 Months 1.99338
USD 3 Months 2.29155
USD 6 Months 2.44971
USD 12 Months 1.72400
Benchmark Yields
Tenor Maturity Yield (%)
91d 14-Jun-18 14.45
182d 13-Sep-18 15.06
364d 14-Feb-19 15.37
2y 13-Feb-20 13.61
3y 15-Jul-21 13.62
5y 27-Jan-22 13.57
Indicative Currency Exchange Rates
Bid Offer
USDNGN (I&E) 358.95 360.60
EURUSD 1.2292 1.2494
GBPUSD 1.4087 1.4289
USDJPY 104.98 105.01
GBPEUR 1.1347 1.1551
USDZAR 11.5401 11.7435
EURNGN 445.39 446.75
GBPNGN 509.98 511.3
