Cement price surges by 100% to N8,800 in one year – Newstrends
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Cement price surges by 100% to N8,800 in one year

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Cement price surges by 100% to N8,800 in one year

High cost of building materials in the country is currently affecting activities in the property sector, posing a huge challenge to the government’s quest for affordable housing.

It has also affected private property developers as many of them have slowed down on construction, while individuals craving to build their houses through direct labour are also complaining.

Also, suppliers of building materials said their capitals have depleted and wares shrank in shops and stores due to uncertain market forces.

Market survey by Daily Trust revealed that prices of building materials have increased astronomically by about 100 per cent amidst rising inflation and inadequate energy supply.

The situation has caused disruptions in the construction industry, posing significant challenges to large-scale developers and homeowners.

This is attributed to a combination of factors, including disruptions in the supply chain, escalating labour cost and wholesalers raising prices compared to factory rates.

According to the National Bureau of Statistics, (NBS), Nigeria’s headline inflation rate in September 2024 rose to 32.70 per cent, up from 32.15 per cent in August 2024, marking a 0.55 per cent increase month-on-month.

The NBS added that inflation during the month was propelled by increases in transportation costs and food prices.

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Also, the urban inflation rate in September 2024 was 2.67 per cent, reflecting a 0.28 percentage point increase compared to 2.39 per cent in August 2024; while the rural inflation rate stood at 2.39 per cent in September 2024, up by 0.33 percentage points from 2.06 per cent recorded in August 2024.

As a result of this inflationary pressure, there has been a slowdown in construction activities as developers struggle with the financial implications of soaring materials’ costs.

Many projects have been delayed or put on hold indefinitely as developers reassess their budgets and financing options in light of the unprecedented circumstances.

A data from the Shelta Afrique Development Bank indicates that Nigeria’s housing deficit stands at about 27 million, which is about 40 per cent of the entire continent’s deficit.

Prices surge by over 100% in 1 year

Investigations by Daily Trust have shown that the prices of building materials have hit the rooftop, amounting to over 100 per cent hike in the last 1 year.

Cement prices surged from N4,000 to N8,800 per bag, representing a 100 per cent increase.

Blocks, which were selling for N250 each, last year, are now between N550 and N600 depending on the size.

Iron rods, which range from 10mm to 16mm, which cost N800,000 per ton in 2023, are now N1,600,000 per ton or more, depending on the company.

The cost of paints has also gone up as a big rubber, which hitherto cost between N23,000 and N25,000, is now between N46,000 and N50,000.

Cement price surges by 100% to N8,800 in one year

Daily Trust

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Bitcoin races above $100,000 mark on Trump appointment

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December 5, 2024

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Bitcoin races above $100,000 mark on Trump appointment 

 

Bitcoin surged above $100,000 for the first time on Thursday, a milestone hailed even by sceptics as a coming-of-age for digital assets as investors bet on a friendly US administration to cement the place of cryptocurrencies in financial markets.

Reuters reports the new price came on Donald Trump’s decision to pick a crypto fan to head the US securities regulator, reinforcing optimism the new President will push through measures to deregulate the sector.

According to the report, the total value of the cryptocurrency market has almost doubled over the year so far to hit a record over $3.8 trillion, going by data provider CoinGecko.

The cryptocurrency soared through the mark, having enjoyed a blistering rally since the November 5 election of Trump, who pledged on the campaign trail to make the United States the “bitcoin and cryptocurrency capital of the world”.

The digital unit has raced over 50 per cent since Trump’s victory — and around 140 per cent since the turn of the year.

However, the unit’s advance — it hit a record of $103,800.44 before easing to just below $103,000 in the afternoon — had stalled in recent weeks, sitting just below $100,000 as traders awaited new catalysts to buy in.

That came with news that Trump settling for a major crypto proponent Paul Atkins to take over as chair of the Securities and Exchange Commission.

Atkins, an SEC commissioner from 2002 to 2008, founded risk consultancy firm Patomak Global Partners in 2009, whose clients include companies in the banking, trading and cryptocurrency industries.

An announcement from the Trump transition team noted that Atkins had been co-chairman of the Digital Chamber of Commerce, which promotes the use of digital assets, since 2017.

“Paul is a proven leader for common sense regulations,” Trump said in a statement that emphasised Atkins’ commitment to “robust, innovative” capital markets.

Trump stated, “He also recognises that digital assets and other innovations are crucial to Making America Greater than Ever Before.”

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Shell Nigeria: We awarded $1.98bn contracts to indigenous firms

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16 hours ago

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December 5, 2024

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Shell Nigeria: We awarded $1.98bn contracts to indigenous firms

Shell Companies in Nigeria said they awarded contracts worth $1.98 billion to indigenous companies in 2023 as part of steps taken to enhance local content in the Nigerian oil and gas industry.

The contracts, awarded by the Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Shell Nigeria Gas (SNG), indicated a three percent increase from $1.92 billion, recorded in 2022.

SNEPCo’s Managing Director, Ron Adams, disclosed this at the 13th edition of the Practical Nigerian Content forum in Yenagoa, Bayelsa State, which had the theme, “Deepening the Next Frontier for Nigerian Content Implementation.”

Adams, who was represented by Business Opportunity Manager for SNEPCo’s Bonga South-West Aparo Project Olaposi Fadahunsi informed participants that several benefitting companies had taken advantage of the patronage to expand their operations and improve their expertise and financial strength.

He said: “Shell companies execute a large proportion of their activities through contracts with third parties, and Nigeria-registered companies have been key beneficiaries of this policy aimed at powering Nigeria’s progress.”

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According to him, Shell companies also implemented projects under the Human Capital Development Fund, including the Niger Delta University learning centre and digital library project and the Federal University of Technology Information Technology Hub. Both projects were inaugurated this year, in collaboration with SPDC Joint Venture partners – Nigeria National Petroleum Company Limited (NNPC), TotalEnergies and Nigeria Agip Oil Company Limited (NAOC).

On his part, Heineken Lokpobiri, Minister of State for Petroleum Resources (oil), said Nigeria will continue to produce fossil fuels despite pressure the pressure on African nations, due to energy transition.

He said: “All the nations that say we should stop the production of fossil fuel, we will never stop the production in Nigeria; no country in the world will stop it.”

Meanwhile, the Nigerian National Petroleum Company Limited, NNPCL, said it has      deepened its operations through strategic restructuring of critical operational units with the aim to increase oil production and sustain indigenous capacity.

The Group Chief Executive Officer (GCEO) of the Company, Mele Kyari, who was represented by the Executive Vice President, Upstream, Mr. Udobong Ntia, at the13th edition of the Practical Nigerian Content forum, emphasized the significance of the PNC Forum as a unique opportunity for stakeholders to reflect on progress, share best practices and identify strategic opportunities for growth.

He said: “The PNC has spawned several initiatives to address stakeholder concerns and maximize the benefits of our rich resources. We have a shared responsibility to empower local firms and drive innovation to ensure a robust oil and gas sector that meets both local and global demands.”

Shell Nigeria: We awarded $1.98bn contracts to indigenous firms

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Complete meter upgrade latest Jan 1, 2025, NERC tells DisCos

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16 hours ago

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December 5, 2024

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Complete meter upgrade latest Jan 1, 2025, NERC tells DisCos

THE Nigerian Electricity Regulatory Commission, NERC,  has extended the deadline for meter upgrades from distribution companies, DisCos, to their customers on January 1, 2025, after which they risk sanction.

Recall that the regulatory agency had given November 24 as the deadline for this process but the DisCos failed to meet a certain percentage of the target population for the scheme.

The metering programme is set to be upgraded from Unistar to Standard Transfer Specifications, STS, meters by the DisCos for all their customers.

Vanguard learned that there are no official figures of the percentage of Nigerians that had complied with the directive, out of the 6.1 million metered customers from the 13.3 million registered electricity customers in the Nigerian Electricity Supply Industry, NESI.

NERC, on its X handle, gave the ultimatum during the fourth guarter of 2024 NESI stakeholders meeting.

The regulatory body vowed to impose penalties on any defaulting DisCos

It said in a statement:  “NERC has directed DISCOs to rapidly conclude the migration of STS-Meters for all their customers to prevent disruption of service.

“During the Q4 NESI stakeholders meeting, the commission warned that daily penalties would be imposed for each meter not migrated effective from 1st January 2025.”

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The commission placed the responsibility of the DisCos to replace all obsolete/faulty meters within their franchise, insisting that DisCos are neither allowed to charge customers for the replacement of these meters nor transfer customers to estimated billing.

Recall also that the Executive Vice Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission, FCCPC, Mr Tunji Bello, had a few weeks ago, warned the distribution companies to cease all activities related to the planned replacement of Unistar meters.

Citing sections 17(j), (l) (s), 116 (2), 124, 125, 138 and 155 of the FCCPA Act 2018, the agency noted:  “The FCCPC notes with concern recent rumours that its directive to Ikeja and Eko electricity distribution companies (IKEDC and EKEDC) to immediately cease all activities related to the planned replacement of Unistar meters may be flouted.

”The directive remains in full force, and any attempt by these DisCos to proceed in contravention of it will attract severe consequences.

“Contrary to recent rumours, the approval of new meter prices by the Nigerian Electricity Regulatory Commission, NERC, has no connection with the proposed replacement of Unistar meters by Ikeja Electric and EKEDC.

”The planned replacement has been invalidated by both the FCCPC and NERC, and there is no indication that the affected DisCos have breached our directives.”

“It is essential to clarify that Ikeja and EKEDC cannot proceed with the withdrawal or replacement of the Unistar meters unless they fully comply with NERC’s order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry (Order No. NERC/246/2021).

“The order mandates that meter replacements must be prompt, without disrupting service and at no cost to the consumer, ensuring that consumers are not subjected to estimated billing due to delayed installations.

“The FCCPC’s position remains clear: non-compliance with these directives by Ikeja and EKEDC will not be tolerated. Any breach of this directive will attract stiff penalties, in line with the provisions of existing consumer protection laws.”

Complete meter upgrade latest Jan 1, 2025, NERC tells DisCos

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