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Real Estate Sector Contributes N20tn To GDP

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In the first three quarters of 2022, economic activity in the construction and real estate industries contributed N20 trillion to the Gross Domestic Product of the country.

Fidel Info reports that This is according to the National Bureau of Statistics’ report on GDP.

According to the research, real estate only contributed N7 trillion to the GDP while construction services generated N12.9 trillion.

Further research showed that construction increased in nominal terms (year-over-year) by 18.92% in the third quarter of 2022, contributing 9.5% to nominal GDP, up from the quarter’s 9.26% contribution a year earlier and 7.95% contribution the previous quarter.

However, the sector experienced a decline of 28.75% points compared to the rate of 47.67% seen in the same quarter of 2021.

The national statistics authority reports that the nominal growth rate for real estate services was 9.13%, which is 0.50 percentage points higher than the growth rate reported for the same quarter in 2021 and 3.68 percentage points lower than the Quarter before.

The sector’s growth rate was 16.38% quarter over quarter. In comparison to the 5.27 percent recorded in the third quarter of 2021 and higher than the 4.95 percent accounted for in the second quarter of 2022, the contribution to nominal GDP in Q3, 2022, was 4.96 percent.

By summing up gross outputs such a total of fees, the value of work completed, commissions due for services supplied, and other incomes, the NBS determines the sector’s contribution.

It also considers intermediate consumptions such as details of the cost structure including transportation fees, operational expenditure, minor repairs and maintenance etc.

Reacting, the Chairman, Real Estate Developer Association of Nigeria, Aliyu Wamakko, stated that the contributed amount had revealed what the private sector could achieve.

He said, “When you talk about real estate, it is driven by private investors. This means for any economy to strive, the private sector must be given a platform and a level playing ground for them to perform.”

“For example, creating jobs in real estate doesn’t require an incubation period, anytime you start building a house, at least 25 persons will get a job. So, if the government want to support the economy of the country, more opportunities should be given to the private sector.”

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Business

FG Announces A Delay In Port Harcourt Refinery Operations

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The Port Harcourt Refinery, whose activities were originally planned to begin in December 2022, will now begin before the end of the first quarter of 2023, according to the Federal Government.

Fidel Info reports that On Monday in Abuja, during the Federal Ministry of Information’s series on the President, Major General Muhammadu Buhari (retd. ), regime scorecard, Mele Kyari, Group Managing Director of the Nigerian National Petroleum Company Limited, revealed this.

Giving reasons for the delay, Kyari said, “The promise was to start the fuel plant, which is the 60,000 barrels per day (bpd) component of this activity by the last quarter of 2022, but it is not practical. So, we will start it off in the first quarter of 2023, otherwise, every other process is ongoing.”

Giving further details on the state of the refinery, the Minister of State for Petroleum Resources, Timipre Sylva, said, “The rehabilitation of the 60,000 barrels per day is being completed and it is going to be started in the first quarter.”

Speaking on the FG’s planned stop to the importation of petroleum products into the country in 2023, Sylva noted that the Dangote refinery, which has a 650,000 barrels per day capacity, and modular refineries across the country, were contributors to the plan.

He said some modular refineries such as the Waltersmith modular refinery, where the NNPC has a 30 per cent stake, and the Duport modular refinery, where NNPC also has a 30 per cent stake, would also start operations in 2023, promising a significant reduction to the importation of petroleum products.

Sylva also noted that fuel subsidy was not sustainable, adding that petroleum product prices should be market driven in Nigeria like in other countries where products sell higher than Nigeria’s current official PMS price at N180 per litre.

The Minister had, in November 2022, announced that the Port Harcourt Refinery, which has been undergoing refurbishment at the cost of $1.5 billion, and which is projected to be delivering 60,000 barrels per day of refined crude, would commence operations by the end of December 2022.

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Here’s Why Canada Banned Nigerians From Buying Real Estate Properties

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Following an increase in real estate market values, the Canadian government has made it illegal for foreigners to purchase property in the nation.

Fidel Info reports that the law was passed by the North American nation after the Covid-19 pandemic began, but it became effective on Sunday, January 1, 2023.

Canada made this decision, which will only be in effect for two years, because some MPs thought that buyers were to blame for driving up the supply of properties for investment purposes and driving up prices.

The appeal of Canadian homes, according to Prime Minister Justin Trudeau and his Liberal Party last year, is drawing profiteers, powerful corporations, and international investors.

Ottawa also clarified in late December that the ban will only apply to city residences and not to recreational properties like summer cottages.

During the 2021 election campaign, when home ownership was out of reach for many Canadians due to skyrocketing prices, Trudeau offered this short-term, two-year policy.

According to the campaign site, “This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors.” 

Following their 2021 election victory, the Liberals quietly introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

Major markets such as Vancouver and Toronto have also introduced taxes on non-residents and empty homes, as per Associated Press report.

However, in the law, an exception has been made for the immigrants and permanent residents of Canada who are not citizens, as per reports from the country.

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Benue: Motorists Distressed As Fuel Sells At N380 Per Litre

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In spite of the NNPC Limited’s intervention, commuters and drivers in Benue state are complaining and wailing about the price of Premium Motor Spirit, PMS, popularly known as gasoline, which is still selling for as much as N380 per litre.

Fidel Info reports that the fact that almost no filling stations owned by big marketers in the state have the product has made the problem worse.

Findings showed that black marketers sell for between N360 and N380 per litre, while the few independent marketers who have products sell to desperate motorists for between N270 and N300 per litre.

Vehicle owners struggle frantically to enter the NNPC Mega Station on Otukpo Road in order to purchase the commodity, which is being sold at a price set by the government.

Some drivers who were unable to contain their anger at the ongoing situation pleaded with the authorities to get involved and resolve it.

A commercial motorbike operator named David Okube bemoaned that huge gas stations in the state were purposefully making things difficult for the people by not dispensing products to the general public while he and other riders waited to acquire the product from the mega station.

“Why will it be only the mega station that is selling fuel to the public, why are other major marketers not selling weeks after the government took steps to ensure that there is enough product in the country?”

“Even nearby Abuja that was hard hit by scarcity now has products. But when you come to Benue state they are selling to us at between N270 and N300 per litre while the black marketers are selling for about N380 per litre some even sell for N400 especially at night.”

“We cannot continue like this because the people are suffering. If you come to mega station to buy you will spend the whole day here and if you are unlucky you might not get to buy before they lock up,” he said.

Also, a medical doctor who spoke on condition of anonymity lamented that it was unacceptable for Nigerians to continue to go through pains in order to buy petrol.

“How can a responsible and responsive government allow its citizens go through this kind of pains in order to buy fuel. I am a medical doctor who is supposed to be in the hospital attending to patients but I abandoned that assignment to search for fuel. Why are all the major marketers in Makurdi not selling fuel. Why are we still buying fuel for about N300 per litre in Benue? It is killing to say the least.”

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