Julius Berger’s Managing Director, Wolfgang Goetsch has attributed an envisaged positive business outlook for Nigeria’s construction sector to the government’s Economic Recovery and Growth Plan.
Wolfgang, who spoke to journalists earlier this week on the sidelines of the company’s Investor Relations forum in Lagos, disclosed that the country’s construction sector is expected to grow in 2018 despite certain challenges.
According to him, Nigeria’s GDP has continued rise, even as inflation decreases and the foreign reserves increases, thanks to favourable crude oil prices. These factors, he said, had led to the International Monetary Fund’s (IMF) elevation of the country’s 2018 growth forecast to 2.1%.
He also gave other reasons for his prediction, stating that the recently-witnessed stability in Nigeria’s currency market, which in the past had caused volatility. He also pointed to investors’ growing desire to readily embrace risks, which has resulted in “more time-intense and intricate contract negotiations requiring more rigorous evaluation.”
As the Economic Recovery and Growth Plan has now been in place, we continue to eagerly anticipate sustainable growth, and we look forward to the tangible positive outcomes for the construction industry, and therefore for our company.– Wolfgang Goetsch
What does this mean for the company and its shareholders?
In view of the highlighted favourable economic conditions and rising investor confidence, the construction industry in Nigeria will generally receive the much-needed boost to ensure productivity. This will in turn benefit companies such as Julius Berger, in the sense that revenue will increase, as well as profitability. As such, the company’s shareholders can be guaranteed of higher dividends.
Already, Julius Berger is positioning itself to take advantage of the current economic situation with its ‘Proactive Change Agenda’ which it hopes will ensure a more competitive and profitable corporation.
The company will, however, need to prepare to grapple with a few challenges, including the ones posed by its competitors. To really distinguish itself from its competitors, the company may also need to do more to always complete their contracts on time. This is said in view of the protracted construction on Lagos-Ibadan Expressway, parts of which the company has been handling for the past five years.
Julius Berger Nigeria Plc was incorporated in 1970 and became listed on the Nigerian Stock Exchange in 1991.
Results for the first quarter ended March 2018 show the company reported revenue of ₦35.32 billion for the period ended March 2018 compared to ₦34.15 billion reported for the period ended March 2017.
Profit before tax was ₦2.21 billion for the period ended March 2018, as against a ₦17.1 million loss before tax recorded in the corresponding period of last year.
The stock closed at ₦29.00 in yesterday’s trading session.
Passengers can now arrive 90 minutes before departure for domestic flights – FG
The Federal Government has announced the reduction of arrival time for passengers from three hours to one hour and a half before departure for domestic flights.
This was disclosed in a tweet post by the Minister for Aviation, Hadi Sirika, through his Twitter handle on Monday, July 13, 2020.
The minister said that the decision was arrived at after they have reviewed passenger facilitation at the airport while noting that passengers should check-in online.
In the tweet post, Sirika said, ‘’My colleagues and I have reviewed passenger facilitation at our airports, consequently I am happy to announce that, henceforth travellers are to arrive one hour and half before their departure time for domestic flights. Travellers are advised to check-in online, please.’’
My colleagues & I have reviewed passenger facilitation at our airports, consequently I am happy to announce that, henceforth travelers are to arrive one hour and a half before their departure time for domestic flights. Travelers are advised to check in online, please 🙏🏽🇳🇬🇳🇬🇳🇬🙏🏽
— Hadi Sirika (@hadisirika) July 13, 2020
It can be recalled that the Federal Airports Authority of Nigeria (FAAN) had earlier in June issued flight resumption protocol for both international and local passengers across the country, advising passengers to arrive at the airport three hours before their time due to the new COVID-19 safety checks for domestic flight operations and five hours for international flight operations.
Seyi Makinde Proposes N3 billion investment plan for water supply
The local governments in Oyo are advised to submit a list of 10 faulty boreholes in the LG.
The Governor of Oyo State, Seyi Makinde announced the proposal of a N3 billion investment plan dedicated to water supply in rural and urban areas of the state.
Speaking through the Chairman of Rural Water Supply and Sanitation Agency (RUWASSA), Mr. Najeem Omirinde in Ibadan on Monday, he added that N500 million of the N3 billion would be used for repairing broken and faulty state-owned boreholes.
All Chairmen of each of the Local Governments in Oyo are advised to submit a list of 10 faulty boreholes in the Local governments.
The Oyo State governor also ordered that all new boreholes must be compliant with solar-powered pumps, to enable their longevity and save costs.
Urging residents to patronize the agency if they need to dig up boreholes for water, citing that it would be cheaper if done through the state agency than with private drilling companies.
Minister of Finance, Zainab Ahmed stated last year that Nigeria needs an estimated N36 trillion annually for the next 30 years to solve Nigeria’s infrastructure problem. The investment, although a tiny fraction of what Nigeria needs is a bold step by the Oyo State government.
FG asks UK court for more time to appeal $9.6 billion arbitration judgement
Malami stated that the Evidence of P&ID’s highly orchestrated scam had only recently come to light.
The Federal Government has approached a UK court to appeal for more time to appeal the $9.6 billion arbitration award against it over the breach of contract with Process & Industrial Development (P&ID) Ltd.
Nigeria has said that it needs more time to pursue its argument that the 2010 gas supply contract with Process & Industrial Development Ltd was a sham.
The legal dispute with P&ID is coming against the backdrop of the huge drop in the country’s revenue due to the collapse in oil prices globally. Nigeria had applied to US courts in March seeking for documents from 10 banks which includes Citigroup Inc. and JPMorgan Chase & Co, in a bid to prove its corruption allegations.
P&ID, however, has denied any wrongdoing in the whole transaction, arguing that Nigeria missed its opportunity to appeal.
The Nigerian Lawyer, Mark Howard, on Monday, the first morning of a 2-day hearing, said ‘’It is very unusual in a fraud case to discover a single smoking gun. By its very nature, fraud is conducted in secret, which makes it hard to detect and justifies an extension.’’
The legal representatives for Nigeria are seeking another hearing for the judge to decide whether any misconduct has taken place and whether it justifies overturning the contract
The Attorney General and Minister for Justice, Abubakar Malami in a statement said, ‘’Evidence of P&ID’s highly orchestrated scam had only recently come to light.’’
It can be recalled that last year, a UK judge upheld an earlier arbitration award to P&ID, which had accumulated to about $9.6 billion. The arbitration decision was over a failed contract to build a gas processing plant in the Southern city of Calabar.
The Nigerian lawyers disclosed that they have uncovered alleged bribes to government officials and their family members dating back to 2009.
Malami in his court filing on March 24, submitted that ‘’There is good reason to believe that ministers at the highest level were involved in a corrupt scheme to steal money from Nigeria.’’