10 November 2017, Sweetcrude, Houston, Texas — The local and international financial market products and services update.
NIGERIA: The Chairman of the Senate Committee on Petroleum Resources (Upstream), Senator Tayo Alasoadura, has stated that it might not be feasible for the National Assembly to pass the petroleum reform bills into law this year. The present administration had split the Petroleum Industry Bill (PIB) into four parts – Petroleum Industry Governance Bill (PIGB), Petroleum Industry Administration Bill (PIAB), Petroleum Industry Fiscal Bill (PIFB) and Petroleum Host Community Bill (PHCB) to fast-track its passage into law. While the Senate had passed the PIGB, which is awaiting concurrence by the House of Representatives, the Petroleum Industry Administration Bill, Petroleum Industry Fiscal Bill, and Petroleum Host Community Bill had all gone through second reading in the upper chamber. However, speaking at a panel session at the 7th Practical Nigerian Content, Alasoadura stated that the National Assembly would likely focus on the 2018 budget.
FIXED INCOME: Bond sales slowed and demand remerged from local real money accounts. Annuities are seen in the 2037s above 15% and 2027s above 15.10%. However, there was some profit taking towards the close of trading. We don’t expect much demand today in bonds to end the week. Bills market remained skewed to the buyers, as the N234bn maturity also increased demand at the OMO auction. O/N closed at 5%.
FX: With a daily turnover of $161.03m, 70% of trades were in the range of $/N 359-361. We saw selling of USD on the day and this was backed by the offshore appetite for fixed income.
E.U.: With the euro-area economy in the best shape in almost 20 years, now is the time to prepare for future slumps, according to European Central Bank policymaker Benoit Coeure. The region’s expansion is proving increasingly balanced and robust, much like its upturn in 1999, the ECB Executive Board member said on Thursday. But while current monetary stimulus will continue as long as necessary, the success must also be nurtured by structural reforms that will better equip the region for the next shock, he said.
CHINA: US President Donald Trump has said he does not blame China for the “unfair” trade relationship between the countries, despite long railing against the economic imbalance. Speaking in Beijing, he gave China “credit” for working to benefit its citizens by taking advantage of the US. He spoke alongside China’s president Xi Jinping on Thursday, as the US leader continued his tour through Asia. The pair also signed $250bn (£190bn) worth of business deals. However, some of the agreements are non-binding, and it was not immediately clear how many represent new or final contracts. The US president, who is visiting Beijing as part of a 12-day Asian trip, has long decried his country’s trade deficit with China. The total trade relationship between the pair was worth $648bn last year, but trade was heavily skewed in China’s favour with the US amassing a deficit of $310bn.
COMMODITIES: Oil is heading for a fifth weekly advance as political upheaval in the world’s biggest crude exporter countered an expansion of U.S. output to the highest level in more than three decades. Brent for January settlement lost 18 cents to $63.75 a barrel on the London-based ICE Futures Europe exchange. Prices are up 2.8 percent this week, set for a fifth weekly gain.
Macro Economic Indicators
Inflation rate (Y-o-Y) for September 2017 16.00%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at November 07, 2017, 34.029
Money Market Highlights
NIBOR (%)
O/N 8.8214
30 Day 19.1899
90 Day 20.7480
180 Day 22.7821
LIBOR (%)
USD 1 Month 1.24606
USD 2 Months 1.34167
USD 3 Months 1.40981
USD 6 Months 1.60162
USD 12 Months 1.72400
Benchmark Yields
Tenor Maturity Yield (%)
91d 01-Feb-18 17.61
182d 03-May-18 19.22
364d 18-Oct-18 17.88
2y 29-Jun-19 15.09
3y 13-Feb-20 14.92
5y 27-Jan-22 14.83
Indicative Currency Exchange Rates
Bid Offer
USDNGN (I&E) 354.44 356.09
EURUSD 1.1537 1.1739
GBPUSD 1.3025 1.3227
USDJPY 113.51 113.54
GBPEUR 1.1177 1.1381
USDZAR 14.1949 14.3983
EURNGN 420.04 421.40
GBPNGN 473.81 475.21