EUR 117.94 For Business Accounts Only

Breakfast Report - 9th May 2016

• In the latest wave of attacks on oil facilities, new militant group, the Niger Delta Avengers clamped on a Chevron Nigeria Limited platform – Okan offshore facility - in the Niger Delta region on Wednesday, triggering a shut-in of the facility (Chevron estimates this at c.90,000 bbl/d). The attacks were extended (Thursday) to the Nigerian National Petroleum Corporation crude and gas lines feeding the Warri & Kaduna refineries and Lagos & Abuja electricity power supply respectively. We expect this series of events to adversely impact already dwindling government revenue as the oil facility shut-in weighs on the country’s oil production volumes. We recall that a similar event - attack on Shell’s Forcados pipeline in February - cut the country’s oil production by c.250,000 bbl/d.

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• According to the Nigerian Bureau of Statistics (NBS), the total value of capital imported into Nigeria in the first quarter of 2016 fell to $711 million, down 74% y/y and representing the lowest level ever recorded since the series began in 2007. On a q/q basis, total value of capital imported was down 54% as a 72% and 45% decline in portfolio investment and other investments respectively (which jointly contributed 76% of total capital imported) outweighed the 42% increase in foreign direct investment.

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