NIGERIA ENERGY COSTS UPDATE: MARCH 2022

The energy cost update describes the current market experience of businesses, consumers, and professionals in dealing with rising energy prices in the Nigerian real estate market, rather than facts, statistics, and historical data.

In just a few days in March 2022, the price of diesel per litre soared from 74 percent (compared to the January 2022 price at N360/litre to N625/litre in early March 2022, as published by https://lnkd.in/diNsZ45q) to 108.33 percent at N800/litre, as published by https://lnkd.in/dGE84sGH, signalling the all-time price high. According to market reports, the price is currently at N820 per litre and is predicted to rise to N1, 000 per litre in May 2022.

Also in March 2022, retail assets, like other commercial real estate, saw a 74.67 percent increase in the cost of diesel per litre, to $7.86 per square metre of retail space, compared to the same month in 2021. During the same time period, the cost of electricity per square metre increased by 13.69 percent.

Without a doubt, growing energy costs have introduced new levels of risk and return perspective to the real estate asset class - residential, commercial, industrial, retail, and hospitality, to mention a few.

Please stay on this page and or connect with us at aabraham@akaa-ng.com and www.akaa-ng.com for additional information on the new degree of risk implications and return prospects of commercial real estate in Nigeria.

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