NIGERIA RETAIL REAL ESTATE ENERGY COSTS OUTLOOK: 2017 TO 2022

The current outlook of Nigeria's commercial real estate sector is loaded with anxieties, angers, questions, and concerns; as energy prices surge to all-time highs in 2022. The global increase in energy costs, as well as basic market inefficiencies unique to the Nigerian market - intermittent power supply, grid failures, and fuel scarcity, etc. - have all contributed to the rise in energy prices.

In January 2022, diesel price climbed by 28.12 percent compared to December 2021 price levels, and by 108.33 percent from January to March 2022 at N360 ($0.87) N750 ($1.80) per litre respectively.

In view of the ongoing, the awareness and knowledge of energy cost information have become important issues for investors, organizations, consumers, and professionals to consider; in order to be better equipped in making crucial decisions about energy improvement measures, cost savings, asset profitability and appreciation.

The big questions are:

1. Will rising energy prices have a negative impact on retail profitability?

2. What effect does the cost of energy have on retail properties' operational performance and market fundamentals in Nigeria?

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