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U.S Markets
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 Quick Numbers
February 10, 2003 |
| IFEM |
 $1:N129.2
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0.3% Last 6mths |
| Parallel Market Rate |
$1:N139 |
1.5% Last 6mths |
| Interest Rates |
91 day
T-Bill | at 15.3% |
MRR | 16.5% |
| NIBOR |
7 Day | to 16.7% |
30 Day | to 18.5% |
90 Day | to 18.8% |
| Inflation |
to 5% in October
Y-O-Y |
unchanged at 18.9% 12 month moving average |
Bonny Light
(Crude Oil) |
to $32.33 |
 24.8% Last 6 months |
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Nigeria Business Weekly Update From
AFRINVEST
February 10, 2003
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Updated February 10, 2003
- BPE invites EOI for automobile plants; approves technical partners for Nigerdock
The Bureau for Public Enterprises (BPE) invited expressions of interest from local and international investors for stakes of up to 35% in three automobile plants, namely Anambra Motor Manufacturing Company (Enugu), Peugeot Automobile Nigeria Ltd (Kaduna) and Volkswagen Nigeria Ltd. (Lagos). The plants are joint ventures with Daimler Benz, Peugeot and Volkswagen, respectively, and were commissioned in the 1970s. However, the majority of automobile plants in Nigeria have been poorly managed to date. In order to pre-qualify, investors will be expected to prove their expertise in this sector. Meanwhile, the BPE approved Single Buoy Moorings Incorporated (Monaco) and Lamprell Energy Ltd. (UAE) as technical partners for Nigerdock Plc. The companies were selected following recommendations from the core investor, Global Energy Company, who acquired a 51% stake in Nigerdock in 2002. The remaining 49% of shares are to be offered as an IPO on the Nigerian Stock Exchange.
- BPE nets US$22m from sale of four state enterprises
In related privatisation news, the BPE announced it had received over N3bn (US$22m)
in proceeds from core investors following the successful privatisations of four state entities namely the Electricity Meter Company of Nigeria, Savannah Sugar Company, Nigeria Reinsurance Corporation and Caterer’s Court.
- CBN tightens licensing requirements for banks
The Central Bank of Nigeria (CBN) announced new measures designed to enhance
stability and discipline in the banking industry. Under the new regulations, licence
requirements for new banks have been tightened to ensure financial institutions
have the required funds and technical expertise to operate. In addition, in a bid to
promote transparency the roles of Chairman and CEO have been separated to high-light
the distinction between ownership and management. Over 30 banks were liquidated
in the mid 1990s after the banking industry went through a period of distress.
A ban imposed on the licensing of new financial institutions was lifted last year
following a marked improvement in terms of management and monitoring in the
sector.
- Foreign exchange reserves remain unchanged at US$7.7bn in November
Nigeria and the African Development Bank (ADB) have signed a US$15.7m credit
facility for the 70km-long transmission network project between NEPA and
Compagnie Electirque du Benin (CEB). The Minister of Power and Steel, Dr Olu
Agunloye, stated that the CEB-NEPA interconnection project was crucial to the
progress of the proposed West African Power Pool (WAPP). WAPP is ECOWAS’
plan to develop an electrical power pool within the West Africa region and was
legally recognized by Energy ministers of the member states in 2000. The Managing
Director of NEPA, Joseph Makoju, noted that the availability of such a network would
facilitate the export of power from countries with a comparative advantage in power
generation.
Source: FOS, CBN
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Money Markets and Foreign Exchange
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Updated February 10, 2003
- Interest rates increase sharply
Interest rates increase sharply at the end of the fortnight largely due to the Nigerian
National Petroleum Corporation (NNPC) withdrawing funds from the market to pay
for its domestic crude oil allocation. Liquidity also tightened as large energy companies
sourced funds to finance custom duties which are due this week. Average interest
rates for 7, 30 and 90-day funds increased to 18% from 15.7% at the end of the
previous fortnight.
- Yield on 91-day t-bills increases marginally
The yield on 91-day treasury bills increased marginally to 15.31%. The Central Bank
of Nigeria (CBN) sold N31.9bn worth of bills, compared to N21.0bn in the previous
week.
- Currency in circulation increases by 6%
In related news, the Central Bank of Nigeria (CBN) announced that the total amount
of currency in circulation was N409bn in November 2002, a 6% increase compared to
the previous month.
- Naira remains unchanged
The CBN offered US$360m in total at the Dutch Auction Sessions (DAS) over the
fortnight (10% less than the previous fortnight), meeting only 61% of demand
(US$586m). As a result the Naira marginally depreciated to N127.5/US$1. The currency
remained unchanged on the parallel and interbank markets at N138-9/US$1
and N129.2/US$1, respectively.
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More Nigerian Business News
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Week ended
February 10, 2003
NSE Index
(Two Week Performance)
4.3% to 13,702.6
Turnover
7.5% to $37.2M
Shares Traded
26.5% to 384,200
P.E. Ratio
8.6% to 15.8
Dividend Yield
8.1% to 5.7%
More Business News
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| Capital Market & Company News
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Updated February 10, 2003
The NSE closed the fortnight up 4.3% at 13,702.6 points. Turnover fell by 8% to
US$37m. Meanwhile, Agip Nigeria was officially de-listed as its merger with
Unipetrol was recognised by the NSE.
PZ Industries Nigeria released half-year results to November 2002, recording an
increase in turnover of 24% to N10.8bn and an increase in profits after tax of 23% to
N742m.
7-Up Nigeria announced half-year results to September 2002, indicating a 19% rise
in revenues to N6.3bn while profits after tax also increased to N580m.
Smithkline Beecham released nine-month results to September 2002, recording an
increase in turnover of 63% to N3.1bn and an increase in profits after tax of 306% to
N365m.
NAL Bank announced half-year results to December 2002. Revenues fell by 4% to
N2.6bn and profits after tax also fell by 74% to N101m.
Niger Insurance announced 3 rd quarter results to September 2002, recording a 27%
rise in revenues to N1bn and 21% increase in profits after tax to N79m.
More Business News
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