07 January 2015, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: The dwindling revenue to the federation account owing to the declining crude oil prices may hinder state governments from securing loans from Nigerian banks and other multilateral institutions as banks have already resolved to stop lending to them to forestall a debt crisis.
Crude oil, the mainstay of the Nigerian economy, has suffered more than 50 per cent fall in the international price of UK Brent/Bonny Light crude since mid-last year. In addition to that, most state governments in Nigeria have poor records of internal revenue collection.
FX: We saw some slight appreciation towards end of day following some oil flow in market (from a late oil auction from yesterday). Brent testing further lows had a subdued effect as the lack of 2 way market ensures market remain flow driven. Oil major is reported to be offering about $50 mio today. Not much change in traded level expected today
FIXED INCOME: There was OMO auction yesterday with stop rate unchanged from the previous day. Yields headed south yesterday again in the Tbill market by some 15bps but demand waned in the bond market as Brent sentiments continues to weigh as it tests all new lows.. Most actively traded bills were 29 Jan 15 (23 day paper down 167bps driven by liquidity managers) and 23 Apr 15 (down 27bps as its the next 91day bill at the 21 Jan Tbill auction) – NGN15.179bn and 14.838bn traded respectively.
USA: Stocks extended the longest losing streak in 13 months as oil pushed losses further below $50 a barrel and data showed slower growth in the services industries. Bonds rallied and the yen strengthened with gold.
EU: European stocks erased gains in the last hour of trading, with lenders pushing them lower for a third consecutive day. The Stoxx Europe 600 Index retreated 0.6 percent to 331.86 at 4:35 p.m yesterday in London after rising as much as 0.6 percent as energy stocks rebounded. The measure dropped as much as 0.9 percent earlier, after data showed a gauge of euro-area services and manufacturing fell short of a preliminary reading.
COMMODITIES: Oil’s selloff has turned energy companies into the biggest losers in an equities retreat that has wiped more than $1 trillion from values this year amid concern that global growth is slowing. U.S. data showed service industries expanded in December at the slowest pace in six months, while factory orders fell more than estimated.
Macro Economic Indicators
Inflation rate (YoY) for Nov., 2014 7.90%
Monetary Policy Rate current 13.00%
FX Reserve (Bn $) as at December 31 2014 34.493
Money Market Highlights
NIBOR (%)
O/N 11.1517
30 Days 13.8985
90 Days 14.5575
180 Days 15.2965
LIBOR (%)
USD 1 Month 0.1677
USD 2 Months 0.2162
USD 3 Months 0.2511
USD 6 Months 0.3603
USD 12 Months 0.6283
Benchmark Yields
Tenor Maturity Yield (%)
91d 09-Apr-15 11.74
182d 25-Jun-15 12.98
364d 17-Dec-15 16.33
2yr 16-Aug-16 14.83
3yr 27-Apr-17 14.85
5yr 29-June-19 14.91
Indicative Currency Exchange Rates
Bid Offer
USDNG 180.00 186.00
EURUSD 1.1834 1.2036
GBPUSD 1.5077 1.5279
USDJPY 118.25 118.28
USDCHF 1.00125 1.0114
GBPEUR 1.2616 1.2820
USDZAR 11.6048 11.8082
JPYNGN 156.1697 156.2703
CHFNGN N/A N/A
EURNGN N/A N/A
GBPNGN N/A N/A
ZARNGN N/A N/A