26 April 2018, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: Some members of the Senate have asked that the process to impeach President Muhammadu Buhari be started, for failing to get the approval for the withdrawal of $496m from the Excess Crude Account to purchase military aircraft.
Senator Mathew Uroghide, who moved a motion at the plenary on Thursday, specifically urged President of the Senate, Bukola Saraki, to allow the chamber to invoke Section 143 of the Constitution. Uroghide stated that the President had breached Section 80 of the Constitution which stipulates that all government’s spending must be appropriated by the legislature.
FX: The highlight of yesterday was the re-pricing of the future curve with all existing contracts up by 0.33 points. Last time the curve moved higher was in December (+0.54 points). Levels in the I&E remain stable for now below the $/N 361.50 handle. However, we have seen in the past days a bid tone. We believe this comes as a result of the drop in yields in the past 2 weeks, reducing inflows via the window.
FIXED INCOME: Primary focus yesterday was on the bond auction which turned out well bid and with significant interest from both local and offshore clients. Bond market was a bit quiet yesterday except for pockets of buying on the 27s and 34s at market close. This outcome of the bond auction justified the late rally, DMO sold the N90bn advertised (though now altering the allotments among the tenors), the stop rates were 12.75% for the new 2023s, 12.85% for 2025s and 12.89% for 2028s. T-bill market was however flat yesterday, there was a bit of selling on the short end of the curve pushing the yield marginally higher.
U.S.: Federal Reserve policymakers seem to be working at cross-purposes.
In laying out plans to ease some constraints imposed on banks after the financial crisis, the Fed is moving to free up tens of billions of dollars for financial institutions to lend to promote faster economic growth.
At the same time, it is reducing its balance sheet and gradually raising interest rates to restrain credit creation and keep the economy in check.
Those steps will complicate the Fed’s effort to engineer the soft landing of an economy that is already being juiced by tax cuts and government spending increases.
U.K: Federal Reserve policymakers seem to be working at cross-purposes.
In laying out plans to ease some constraints imposed on banks after the financial crisis, the Fed is moving to free up tens of billions of dollars for financial institutions to lend to promote faster economic growth.
At the same time, it is reducing its balance sheet and gradually raising interest rates to restrain credit creation and keep the economy in check.
Those steps will complicate the Fed’s effort to engineer the soft landing of an economy that is already being juiced by tax cuts and government spending increases.
COMMODITIES: Oil held above $68 a barrel as America’s potential exit from the Iran nuclear deal increased concern over Middle East supplies, overshadowing expanding U.S. crude output and stockpiles.
Futures were little changed in New York after climbing 0.5% Wednesday. French President Emmanuel Macron predicted U.S. President Donald Trump will pull out of the Iran accord. A revival of sanctions on the Persian Gulf state is expected to cut oil exports from the third-largest OPEC producer. Meanwhile, investors largely shrugged off a government report showing record high American crude production and a surprise build in nationwide inventories.
Macro Economic Indicators
Inflation rate (Y-o-Y) for March 2017 13.34%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at April 16, 2018, 47,009
Money Market Highlights
NIBOR (%)
O/N 3.0500
30 Day 11.0999
90 Day 12.3426
180 Day 13.8841
LIBOR (%)
USD 1 Month 1.89695
USD 2 Months 2.05813
USD 3 Months 2.35923
USD 6 Months 2.51125
USD 12 Months 1.72400
Benchmark Yields
Tenor Maturity Yield (%)
91d 26-Jul-18 10.31
182d 25-Oct-18 11.40
364d 04-Apr-19 13.62
2y 13-Feb-20 12.21
3y 15-Jul-21 12.58
5y 27-Jan-22 12.80
Indicative Currency Exchange Rates
Bid Offer
USDNGN (I&E) 359.00 360.00
EURUSD 1.2100 1.2400
GBPUSD 1.3849 1.4052
USDJPY 108.81 108.90
GBPEUR 1.1330 1.1507
USDZAR 12.1583 12.3617
EURNGN 444.15 445.60
GBPNGN 511.08 515.85
