PROPERTY NEWS
Akwa Ibom Govt flags off 18-storey Ibom Towers in Victoria
The Akwa Ibom State Government has officially kicked off the construction of the 18-storey Ibom Towers in Lagos, with a commitment to complete the project within 24 months. This landmark initiative, graced by the presence of distinguished leaders, including Governor Sanwo-Olu and former Governors Udom Emmanuel and Obong Victor Attah, is poised to drive economic diversification and boost revenue and GDP growth for both Akwa Ibom and Lagos.
Scheduled to be a symbol of prosperity and innovation, Ibom Towers in Victoria Island will not only serve as a luxurious residence but also as a key revenue generator through property leases and tourism income.
The project underscores the power of unity and vision in fostering economic development, showcasing the essence of bipartisanship and collaboration between states.
South Africa’s Pick n Pay Shuts Down In Nigeria After 4 Years
South African grocery giant Pick n Pay (PIKJ.J) has announced plans to exit Nigeria by selling its 51% stake in a joint venture, marking a strategic retreat from the Nigerian market as part of broader restructuring efforts outside its home market. CEO Sean Summers disclosed on Monday, October 28, that the exit aligns with the company’s recent efforts to streamline its international operations.
The decision comes as Pick n Pay faces mounting financial pressures, reporting a substantial half-year loss due to operational and borrowing costs. Entering Nigeria less than five years ago through a partnership with A.G. Leventis, Pick n Pay currently runs two stores, including one in the prominent Lagos district of Victoria Island.
FG Moves to Halt Incessant Building Collapse, Inaugurates Disciplinary Tribunal
The Nigerian government, through Minister of Housing and Urban Development Ahmed Dangiwa, has inaugurated a disciplinary tribunal to address the rising issue of building collapses. This seven-member tribunal under the Council of Registered Builders of Nigeria (CORBON) is tasked with enforcing professional standards and holding builders accountable for negligence. Dangiwa emphasized the importance of construction safety, citing recent collapses and the need for stricter adherence to building regulations to protect lives and enhance public trust.
Council Approves Establishment of National Mortgage Registry, Housing Fund
The National Council on Housing and Urban Development has approved the establishment of a national mortgage registry to centralize all mortgage transactions across Nigeria, which will be housed in the Federal Mortgage Bank of Nigeria (FMBN). This initiative aims to enhance the development of the mortgage sector and includes the creation of a National Social Housing Fund and building materials manufacturing hubs in each geopolitical zone.
Minister of Housing and Urban Development, Ahmed Dangiwa
Additionally, the council has advised state and local councils to adopt uniform land registry practices and to consider reviewing the Foreclosure Law to attract local and foreign investment in the housing sector. During its recent meeting in Kaduna State, the council also endorsed the use of arbitration to resolve disputes in construction contracts and tenant agreements, promoting a shift from litigation to arbitration as a more efficient means of conflict resolution.
Dangote Cement Reports on Q3 2024 Performance
In our financial reporting, the Nigerian region includes Dangote Cement Plc (‘the company’) which has plants in Obajana, Ibese and Gboko; DCP Cement Ltd with a 3Mt plant in Obajana; and Okpella Cement Plc’s 3Mt plant.
Nigeria continues to navigate a series of policy reforms. Borrowing costs have surged, with the monetary authorities delivering five consecutive hikes in benchmark interest to 27.25%. This marks an 850-basis point increase from the 18.75% last year, aimed at addressing spiralling inflation. While some progress has been recorded, with inflation easing for two consecutive months to 32.15% in August, the repeated increases in the pump price of premium motor spirit and its pass-through effect on transportation cost reversed the disinflation trend, as headline inflation quickened to 32.7% in September, further eroding consumer purchasing power.
Notwithstanding, our Nigerian business navigated the challenging environment with volume up 9.5% to 13.2 Mt from the 12.0 Mt sold in nine months of 2023. This growth was driven by promotional activities and improved route to market solution. These activities boosted market presence of our products and mitigated the adverse effects of higher rainfall and flooding. Consequently, revenue from the Nigerian operations increased by 64.1% to ₦1,531.5B in 9M 2024, while EBITDA rose by 37.3% to ₦697.4B, excluding central costs and eliminations (9M 2023: ₦508.1B, margin of 54.5%). Our Nigerian operation recorded an EBITDA margin of 45.5%. Our lower EBITDA margin was as a result of the significant devaluation of the Naira compared to the same period last year, which resulted in a significant increase in both our variable and fixed costs.
During the period, the Nigeria region shipped 645.9 Kt of clinker to Cameroon and Ghana. However, cement exports were reduced to 227 Kt due to a halt in exports with neighbouring Niger. Cumulatively, total Nigerian exports were up 75.5% to 873 Kt. We have received over 1,500 CNG trucks to replace high diesel-powered vehicles, supporting our cost-saving initiatives. Our goal is to expand this fleet to 3,000 in the coming years.