Like every other sector, the building and construction industry may be witnessing one of its worst moments, as exchange rate, building materials, and labour prices have triggered an increase in construction costs by 200 per cent in the last two years.

Nigeria’s inflation rate as of December 2023 climbed to 28.9 per cent. The recent upsurge in inflation is primarily linked to the effects of petrol subsidy removal and the devaluation of the official exchange rate, both exerting substantial impacts on consumer prices.

The exchange rate crisis has worsened the woes of the building sector. The direct effect of exchange rate is being felt more on imported materials like windows, doors, ceramics, tiles, plumbing appliances and sanitary wares, which represent 23 per cent of materials in the building market. The prices of the local materials, which account for 37 per cent of materials in the market, have also been affected by increase in the cost of production and transportation to the end-users.

The depreciation in the value of the naira directly affects the prices of building materials in the construction industry. Material components of a building account for about 60 per cent of the building cost. With the present economic situation, the downward trend of the value of the naira, cost of materials continues to escalate at a higher rate.

Prices of essential building materials such as cement, blocks, doors, reinforcement rods, sand, timber, paints, roofing sheets, glass and tiles have risen by over 75 per cent in the last 12 months and this has become a source of concern to the built environment professionals because of the direct impact on supply, affordability and accessibility to housing, especially for low and middle-income earners. According to architects, materials and labour prices have risen between 100- 200 per cent in the last two years.

For instance, The Guardian Building Materials survey last week shows that a 50-kilogramme bag of cement that was sold for N4,700 in January last year now sells between N6,200 and N6,500. The cost of raw materials such as limestone, clay, and gypsum, is attributed to price increase from haulage and fluctuations in exchange rate, according to producers.

For cement-based blocks, a nine-inch block previously sold at N450 is now N550, while the six-inch block is now N500 from N370. There has also been an increase in the price per tonne of iron rods. The 8mm previously at N255,000 per tonne is now N518,000, 10mm that used to cost N442, 000 goes for N520, 000, while 12mm and 16mm rods that sold for N446 is now N515, 000, while 20mm and 25mm earlier sold for N442, 000 now command N530, 000 price, depending on location.

Accordingly, labour prices have gone up, with artisans that earlier charged between N3, 000 to 4,000 per day last year, charging between N6, 000 and N8, 000, depending on the location. A key factor to these charges is the cost of fare to the site. Some of the built environment professionals have also raised their scale of fees indirectly to reflect the inflationary trend.

Generally, price of paints in 20 litres containers also increased from N8,000 with price hovering between N10,900 and N35,000 depending on the brand, location, while retailers and distributors sell between N12, 500 and N45, 000. Price of sanitary fittings and other items have also hit the rooftop.
The development has made it difficult for property developers and contractors to deliver affordable housing for over 75 per cent of Nigerians, who lack access to desired accommodation. There has also been a spiral effect in prices of houses, especially newly constructed buildings, as well as delayed delivery of projects.

Rental prices are also increasing in low-income settlements with a room self-contained of N150,000, being rented for N250,000; a two-bedroom flat has increased from N400,000 to N600,000, while a three-bedroom apartment rose from N500,000 to N800,000 and could be higher depending on location. For the same type of units in highbrow areas, a two-bedroom is as high as N1.2 million, while three bedrooms go for N1.8 million and above.

Experts say cost of construction will continue to rise, except the Federal Government intervenes in the sector through deliberate policies to lower costs of construction. 

President, Commonwealth Association of Surveyors and Land Economy (CASLE), Segun Ajanlekoko, said without economic re-engineering, the cost of construction will continue to rise, as the country is import-dependent for major components of construction materials.

Ajanlekoko, a past president, Nigerian Institute of Quantity Surveyors (NIQS), who said the rise in construction cost is between 35 per cent, traced it to the sharp decline in the value of the naira in the foreign exchange market and internal operating cost arising from increases in consumables like diesel for generators, transportation costs for labourers and other logistics.

While noting that infrastructure projects affected heavy engineering projects such as roads and bridges, he called for greater and effective cost management. According to him, the government must allow a special discretionary exchange rate for imported materials, grant tax relief for construction companies and encourage use of local materials.

The CASLE president further advocated establishment of a financial intermediation that will reduce the overall cost expenditures and reduce interest to a single digit, as well as invigorate economic activities and help upscale Gross domestic Product (GDP) growth and reduce unemployment.

President, Nigerian Institute of Quantity Surveyors (NITP), Nathaniel Atebije, traced the problem to high inflation rate.

“The naira has nose-dived beyond any record in history. And most of the building materials are imported, which are usually imported with foreign currency. Secondly, the cost of transporting  materials has skyrocketed because of the increase in the pump price of petroleum products under the claim of removal of petroleum subsidy. The prices of these products go up almost every week. These and other factors such as the cost of labour have generated high multiplier effects on the cost of construction,” he said.

Atebije estimates the percentage increase in the past one year to be in the region of 400 per cent. He cited an instance, “We are working on a building whose burglary proofing materials were estimated at N3 million by May 2023 but by December 2023, a revised quote took it above N11 million. It was unbelievable though real. I am sure the price must have gone higher by now.”

He urged the government to drastically reduce bureaucratic bottlenecks between project conception and construction, strengthen relevant institutions to research and encourage the use of locally produced building materials, as well as minimise engagement of foreign professionals and contractors in the construction industry and massively engage indigenous professionals and contractors of proven competence and integrity.

NITP president also wants tariffs on highly essential building materials reduced to allow for the importation of high-tech building materials, as well as access to land and tax waivers to encourage manufacturers of building materials to set up industries and produce in Nigeria.

Atebije, who noticed the rise in all aspects of construction, expressed concern on the increase in housing, which is the most basic need of man. “It is most noticeable in housing because the deficit continues to stare at us and the nation looks helpless in attending to the increasing homelessness, the need to replace the ageing residential properties, failure of which is responsible for the collapse of buildings, killing many Nigerians.

“The cost of building materials is the reason for the growing shanties and illegal developments in the form of slums and its attendant problems. Urgent attention needs to be given to the need to reduce cost of building materials to promote sane development and management of our human settlements,” he added.

Nigerian Institute of Architects (NIA) President, Omobolaji Adeniyi, said the devaluation of currency has led to increase in production cost for most construction materials and high cost of transportation due to removal of fuel subsidy of the products (AGO and PMS prices). She also blamed it on the high interest rates, limited access to affordable funds, shortage of skilled manpower and heavy reliance on imported construction materials.

Adeniyi said the effect of the cost increase is noticed across all construction projects because the same materials are used, adding that it is very noticeable in housing, with developers raising house prices by 40 to 50 per cent in the last year due to high materials cost and related expenses.

“The average cost of building materials rose by 35.75 per cent in the first half of 2022 compared to the same period in 2021. It has been consistently rising since then and we can put a range of 100 – 200 per cent increase across board in the last two years. This varies from one material to the other, and from one place to the other, affected by local forces like nearness to the sources of the materials,” she said.

She urged the government to pursue deliberate policies to lower the costs of construction and focus on stabilising the naira by creating a more accommodating regulatory environment for investors. Other measures she recommended include lowering of duties for imported components, support for local production of some of these materials, funding of research and development in alternative materials and methodologies, and the formulation of more effective regulations.

Adeniyi stated that housing and infrastructure are the most important indices in the measurement of development and biggest drivers of employment in almost all economies. “The stimulation of the construction sector has a big impact in any economy. Making construction more affordable would be an important game-changer for our economy. The rising costs of building materials also impact on disposable incomes and purchasing power among Nigerians, exacerbating employment challenges and potentially slowing down crucial construction activities for economic growth,” he added.

The Guardian

Chief of Staff to the President, Femi Gbajabiamila, met behind closed doors with the National Security Adviser, NSA, Nuhu Ribadu, and some ministers at the Presidential Villa, Abuja, yesterday, over food security and protests in some states.

The meeting, which began at about 05:30 pm, also had in attendance governor of the Central Bank of Nigeria, Yemi Cardoso; Ministers of Education, Tahir Mamman; Finance, Wale Edun; Budget and National Planning, Atiku Bagudu; Agriculture, Abubakar Kyari; and State for Agriculture, Sabi Abdullahi.

Briefing State House correspondents after the meeting that lasted for about three hours, Minister of Information and National Orientation, Mohammed Idris, expressed President Bola Tinubu’s worry over the development.

He said that the President has directed that the situation should be arrested by the Presidential Committee in order to reduce hardship on the populace.

The Minister, who said that there is enough food in the country, added that some elements are trying to take advantage of the high food prices and the depreciation of naira to cause havoc.

He said, “We just rounded off a meeting. It is a special presidential committee to address the issue of food shortage or lack of enough food on the table of most Nigerians.

“This is just the beginning of that meeting. It is going to continue tomorrow and day after tomorrow. The government is very concerned about what Nigerians are going through, especially what has happened in Minna yesterday, and therefore government is taking some action to ensure that Nigerians have some relief in terms of the availability of food on the table.

“Of course, this meeting is not by itself exhaustive. It’s just like I said, the beginning. It is going to continue tomorrow and the day after.

“Now, some of these will involve unlocking the foods that are available in most of the storage facilities (National Food Reserve) around the country. You know that the Federal Minister of Agriculture has some food reserves. That is going to be made available to Nigerians.”

The meeting was held on the heels of the protests by women in Minna, Niger State, and that of angry youths in Kano over the rising cost of living in the country.

A group of women in Minna, Niger State, had on Monday, blocked the ever-busy Minna-Bida Road at the popular Kpakungu Roundabout and called on the administration of President Bola Tinubu to address the problem of ‘hunger in the land.’

Youths in Kano also protested over the hardship in the country and the state governor, Abba Yusuf, assured them that he would take their complaints to the President.

Vanguard

All Progressives Congress (APC) says it is unfair to assess the administration of President Bola Tinubu based on the current economic realities.

Speaking in an interview on Channels Television, Felix Morka, APC spokesperson, said things are tough in many parts of the world. Cost of living.

On Monday, some residents of Minna, Niger state capital, blocked major roads in the city to protest the rising cost of living in the country.

There was also a protest in Kano state over the economic hardship being experienced by Nigerians.

Speaking on the development, Morka said the criticism of the Tinubu’s administration on the economic situation of the country is “unfair”, adding that the government is yet to spend one year in office.

“Our people are dealing with circumstances that are difficult and challenging. Nobody is in denial,” he said.

“Things are tough, they are tough in Nigeria and everywhere else. Farmers in Europe are barely going to farm, they are protesting vehemently, challenging the European government, who by all indices are doing better than we are but things are still tough.

“This government has a mandate of four years. Why are we sitting here talking as though we are in the eighth month of the eight years of this administration?

“This government is not one year in office yet, just a few months. It is unfair to this president.

“Look at the bold steps this administration has taken to tackle these fundamental problems.”

The Cable

Peoples Democratic Party (PDP) says the All Progressives Congress (APC) is politicising the protest by Nigerians against the current economic hardship and worsening insecurity in the country.

On Monday, some residents of Minna, Niger state capital, blocked major roads in the city to protest the rising cost of living in the country.

There were also protests in Kano state and other parts of the country over the economic hardship being experienced by Nigerians.

While commenting on the protests, the APC claimed that opposition parties were instigating the protests to undermine the Bola Tinubu administration.

In a statement issued on Tuesday, Debo Ologunagba, PDP spokesperson, said APC cannot threaten Nigerians from exercising their democratic and constitutional right to protest against the “agonising poverty, hunger, killings and other harrowing experiences”.

The opposition party said APC’s remark on the protests by Nigerians is “insensitive and relishes the life-discounting situation in the country”.

The PDP said the poverty rate in the country is rising noting that many Nigerians go to bed hungry.

“This approach by the APC, instead of listening to the people, is not only offensive but akin to pushing Nigerians to the wall and daring them to do their worst,” the statement reads.

“It is an assault on the sensibility of the people that rather than providing answers to how the Tinubu-led APC government in a space of nine months, turned the nation’s economy upside down leading to terrifying food scarcity and catastrophic high cost of living, the APC is seeking to label and clamp down on the suffering masses.”

The PDP alleged that more than 104 million citizens have “sunk deeper” into poverty due to policies of the government.

“Nigerians can no longer afford their daily meals with families now going to bed on empty stomachs as poverty rate soars to over 46%,” the party said.

“Any government that has an idea of macro-economic policy management ought to have recognized that the suffocating policies of abrupt increase in the pump price of petroleum products, high cost of electricity and arbitrary floating of the naira as executed by the Tinubu administration without due considerations, would have excruciating consequences to the economy as being witnessed today.

“Today, Nigerians are resorting to suicide while thousands of our promising youths are leaving the country in droves.”

The PDP also criticised Tinubu over the rising kidnappings across the country, saying he has failed to “show seriousness” on issues of security or empathy to victims “either by words or action”.

The Cable

Labour Party (LP) has asked President Bola Tinubu to seek help in addressing the high cost of living in the country before the situation becomes unmanageable.

The LP said the federal government needs to take action to reduce the hardship being faced by Nigerians.

LP national publicity secretary, Obiora Ifoh, made this call in a statement on Monday.

Recall that protests broke out in Niger and Kano states this week, with residents blocking roads over food inflation and economic hardship.

Ifoh said, “It is deeply concerned about the increasing cost of living in Nigeria and how millions of Nigerians are battling with the crisis of food shortage since the turn of the year”.

“It is either that the government is bereft of ideas on how to check this unfolding catastrophe or that it chose to continue to act as if it is still campaigning for office. This is no time for politics.

“Our presidential candidate in the 2023 general elections, Peter Obi has said it time and again that until we get the leadership question right, we will continue to grapple in the dark.

“He has always said we need to move away from a consumption dependent economy to a productive one in order to shore up our foreign exchange reserves and ultimately strengthen the Naira for the economic boom we desire.

“Mr. President and his team should just admit they’ve run out of ideas, they should ask for help because it is now apparent that no amount of propaganda can change the fact that more and more Nigerians are falling below the poverty line.

“Local and foreign companies are folding up and government appears at a loss as to what next to do other than ask us all to pray.

“The Federal Government needs to take action to reduce the hardship being faced by the poor Nigerians, and seek help because things are becoming unbearable for average Nigerians.

“This must be done immediately to stem the rising tide of discontentment.”

Vanguard

Gaza mediators search for 'final formula' for Israel, Hamas ceasefire

U.S., Qatari and Egyptian mediators prepared a diplomatic push to bridge differences between Israel and Hamas on a ceasefire plan for Gaza after the Palestinian group responded to a proposal for an extended pause in fighting and hostage releases.

Hamas on Tuesday replied to a framework drawn up more than a week ago by U.S. and Israeli spy chiefs at a meeting in Paris with the Egyptians and Qataris.

Details of the response were not disclosed. In a statement Hamas said on Tuesday it responded "in a positive spirit, ensuring a comprehensive and complete ceasefire, ending the aggression against our people, ensuring relief, shelter, and reconstruction, lifting the siege on the Gaza Strip, and achieving a prisoner swap."

U.S. Secretary of State Antony Blinken, on a lightning tour of the Middle East, said he would discuss the Hamas response with Israeli officials when he visits the country on Wednesday.

In Doha, Blinken said, "There’s still a lot of work to do ... but we continue to believe that an agreement is possible, and indeed essential."

Qatar described the Hamas response as "positive" overall while Egyptian security sources told Reuters that Hamas showed flexibility.

"We will discuss all the details of the proposed framework with the concerned parties to reach an agreement on the final formula as soon as possible," Diaa Rashwan, head of Egypt's State Information Service, was quoted as saying.

Sources close to the talks have said the truce would last at least 40 days, during which the militants would free civilians among the remaining hostages they hold.

Further phases would follow, to hand over soldiers and dead bodies of hostages, in exchange for releases of Palestinians imprisoned in Israel. The truce would also increase the flow of food and other aid to Gaza's desperate civilians who are facing hunger and dire shortages of basic supplies.

U.S. President Joe Biden said the Hamas response showed "some movement" toward a deal. But it was unclear if either Hamas or Israel were willing to soften their stated hardline positions in order to reach a truce agreement.

A Hamas official who asked not to be identified reiterated to Reuters earlier on Tuesday that the Palestinian Islamist movement would not allow any hostage releases without guarantees that the war would end and Israeli forces leave Gaza.

Prime Minister Benjamin Netanyahu has insisted Israel will not end its Gaza campaign until Hamas is wiped out and has ruled out the creation of a Palestinian state.

Saudi Arabia has told the U.S. its position stands that there will be no diplomatic relations with Israel unless an independent Palestinian state is recognised on the 1967 borders with East Jerusalem, and Israeli "aggression" in Gaza stops, the Saudi foreign ministry said in a statement on Wednesday.

Saudi Arabia put U.S.-backed plans to normalise ties with Israel on ice, sources familiar with Riyadh's thinking told Reuters in Oct, 2023, as the war between Palestinian militant group Hamas and Israeli forces escalated.

MORE HOSTAGES MAY BE DEAD

There is a growing Israeli movement demanding more effort to bring the hostages home, even if that means a deal with Hamas.

Israel's military said on Tuesday that 31 of the remaining hostages in Gaza had been pronounced dead. Israel previously said 136 hostages were still in Gaza after 110 were freed under a seven-day November truce when Israel also released 240 Palestinians it was holding.

Citing an Israeli assessment shared with U.S. and Egyptian officials, the Wall Street Journal reported that as many as 50 hostages could be dead, leaving about 80 hostages alive.

Israel began its military offensive in Gaza after militants from Hamas-ruled Gaza killed 1,200 people and took 253 hostages in southern Israel on Oct. 7.

Gaza's Health Ministry says at least 27,585 Palestinians have been confirmed killed in Israel's military campaign, with thousands more feared buried under rubble.

On the ground in Gaza, Israeli forces on Tuesday kept up pressure on Khan Younis, the main southern city they have been trying to capture for weeks. At least 14 people were killed by air strikes, Palestinian residents and medics said.

Rafah, just south of it, was also hit by air strikes and tank shelling. Two people were killed in a strike on a house in Rafah while six policemen died after their car was hit, Gaza health officials said.

Israeli leaders vowed last week to push into Rafah next, alarming international aid agencies who say a million displaced civilians would be in harm's way, pinned against the border fence with Egypt.

Reuters

WESTERN PERSPECTIVE

Ukraine's Zelenskiy orders creation of separate military force for drones

President Volodymyr Zelenskiy on Tuesday ordered the creation of a separate branch of Ukraine's armed forces devoted to drones, weapons he and military officials say are crucial to fighting the war against Russia.

Zelenskiy signed a decree calling on the government and general staff of the armed forces to "work out issues on the creation within the Ukrainian armed forces of a separate force for drone systems".

"I have just signed a decree which will launch the creation of a separate branch within our armed forces -- a drone systems force," Zelenskiy said in his nightly video address.

"This is not a question for the future. Rather, it must provide concrete results in the very near future. This year must be decisive in a great many aspects. And clearly on the battlefield. Drone systems have shown their effectiveness on land, in the skies and on the seas."

Mykhailo Fedorov, Ukraine's Minister for Digital Transformation, said the separate branch would provide "a powerful impetus" to the military's technological development.

In the past year, he said, drones had "fundamentally changed the situation on the battlefield. They are effective in stopping Russian attacks and back up counterattacks by Ukraine's armed forces."

According to Zelenskiy's decree, the results of the study would be submitted to the policy-making National Security and Defence Council.

Zelenskiy has pointed to drones, and production domestically and with partner nations, as a key element in conducting the war against Russia since Moscow's invasion two years ago this month.

In December, the president pledged that Ukraine would produce a million drones in 2024.

Government officials have said that Ukraine aims to produce tens of thousands of drones every month. No figures on current production are available, but since the start of the war, drone production has shot up, with dozens of companies developing and producing different models.

The commander in chief of Ukraine's armed forces, Valeriy Zaluzhnyi, whose position is in question in view of differences with the president, said in a comment for CNN last week that drones were critical for the conduct of the war.

"Crucially, it is these unmanned systems – such as drones – along with other types of advanced weapons, that provide the best way for Ukraine to avoid being drawn into a positional war, where we do not possess the advantage," Zaluzhnyi wrote.

RUSSIAN PERSPECTIVE

Ukrainian forces lose up to 290 servicemen, equipment in Donetsk area

The Russian armed forces wiped out up to 290 Ukrainian servicemen, a tank and two infantry fighting vehicles in the Donetsk area over the past 24 hours, the Defense Ministry said.

Here are the details of this and other combat actions that happened over the past 24 hours, according to the Ministry report.

Donetsk Area

"The Ukrainian military lost up to 290 servicemen, a tank, two infantry fighting vehicles and three vehicles. In addition, a US-made M777 artillery system, a Msta-B howitzer, and a US-made AN/TPQ-50 counter-battery radar were hit," the Ministry said.

The Russian army continues to take more favorable positions in the Donetsk area, with seven Ukrainian attacks repelled over the past 24 hours, the Defense Ministry added.

"Near Donetsk, units of the southern group have taken more advantageous lines and positions, as well as repelled 7 enemy attacks and inflicted losses in manpower and materiel on the enemy in the areas of Kleshcheyevka, Andreyevka, Kurdyumovka, Novgorodskoye, Georgiyevka and Katerinovka of the Donetsk People's Republic," the report says.

A day earlier, the Ministry also reported that units of the southern group had occupied more favorable positions in the Donetsk area over 24 hours.

Southern Donetsk Area

Units of Russia’s Battlegroup East repulsed two attacks of Ukrainian assault teams in the south Donetsk area over the past 24 hours in the special military operation in Ukraine, the Defense Ministry announced.

"In the south Donetsk direction, units of the battlegroup East improved their frontline positions, repelled two attacks and inflicted damage on the manpower and military hardware of the Ukrainian army’s 58th motorized infantry brigade, 105th and 128th territorial defense brigades near the settlements of Staromayorskoye, Urozhainoye in the Donetsk People’s Republic [DPR] and Priyutnoye in the Zaporozhye Region," the Ministry stated.

"The Ukrainian army’s losses in the south Donetsk area over the past day amounted to roughly 195 personnel, a tank and two motor vehicles.," the Ministry specified.

In counter-battery fire, Russian forces destroyed an Akatsiya motorized artillery systems and a Gvozdika motorized artillery system.

Zaporozhye Area

The Ukrainian armed forces lost more than 95 servicemen, a D-20 gun and a Gvozdika howitzer in the Zaporozhye area over the past 24 hours, the Defense Ministry said.

"The enemy lost over 95 servicemen, two armored combat vehicles and two pickup trucks, as well as a a D-20 gun and a Gvozdika howitzer," the Ministry said, adding that Russian forces defeated the 128th Ukrainian mountain assault, 65th, 118th mechanized brigades near Rabotino, Nesteryanka and Pyatikhatki of the Zaporozhye Region.

Krasny Liman Area

Russian forces left roughly 240 Ukrainian troops killed and wounded in the Krasny Liman area over the past day in the special military operation in Ukraine, the Defense Ministry reported.

"In the Krasny Liman direction, the battlegroup Center improved its frontline position and repelled two attacks by assault groups of the Ukrainian army’s 60th mechanized brigade near the settlement of Yampolovka in the Donetsk People’s Republic [DPR]," the Ministry stated.

The Ministry also said that the Russian forces also destroyed a Ukrainian field artillery arms depot and inflicted damage on the enemy’s military hardware and personnel.

The enemy’s losses in the Krasny Liman direction over the past 24 hours "amounted up to 240 personnel, three armored combat vehicles, four motor vehicles and an Akatsiya motorized artillery system," the statement specified.

Kupyansk Area

The Russian army repelled six Ukrainian attacks near Kupyansk during one day, with the enemy's losses estimated at 35 men, the Russian Defense Ministry said.

"In the Kupyansk area, units of the western group of forces repelled six attacks by assault groups of Ukraine’s 25th airborne, 30th and 44th mechanized brigades and 18th brigade of the National Guard in the areas of Sinkovka in the Kharkov Region, and Terny in the Donetsk People's Republic. The enemy lost up to 35 servicemen and 2 vehicles," the news release reads.

Kherson Area

The Ukrainian armed forces lost up to 30 servicemen and 2 automobile vehicles in the Kherson area, the Defense ministry reported.

"On the Kherson area, actions of the Russian battlegroup and complex fire damage over the past 24 hours resulted in Ukrainian armed forces’ casualties of 30 servicemen and 2 automobile vehicles," the Ministry noted.

Seversk area

A Grad multiple launch rocket system (MLRS) of the South battlegroup destroyed a group of Ukrainian infantry and disrupted a rotation at frontline positions in the Seversk direction, the Defense Ministry said.

"Air reconnaissance exposed accumulations of Ukrainian personnel preparing to rotate in the Seversk direction. The Grad MLRS advanced to the firing position and delivered a strike at the adversary," it said.

The MLRS then abandoned the position and drove to a safe area for reloading, it added.

Destroyed equipment tally

The Russian Air Defense Troops shot down two HIMARS rockets and 30 Ukrainian drones over the past day, the Defense Ministry reported.

"The Russian Air Defense Troops downed two HIMARS rockets. In addition, 30 Ukrainian unmanned aerial vehicles were destroyed near Masyutovka of the Kharkov Region, Baranikovka, Lisichansk, Nikolayevka of the Lugansk People's Republic, Otradovka of the Donetsk People's Republic, Novaya Kakhovka and Alyoshki of the Kherson Region," the statement said.

The Ministry also said that since the beginning of the special military operation, Russian forces destroyed 568 aircraft, 265 helicopters, 11,863 drones, 462 anti-aircraft missile systems, 14,927 tanks and other armored combat vehicles, 1,217 multiple rocket launchers, 7,973 field artillery and mortars, as well as 18,283 units of special military vehicles.

Reuters/Tass

It was January, which means an influx of people at the gym, sweeping declarations for big life changes and a whole lot of companies sending emails about their prices going up.

While it may feel like a coincidence that these things arrive with each turn of the calendar, there's a psychological reason for it. Wharton professor Katy Milkman and colleagues have dubbed it the Fresh Start Effect.

We humans feel compelled to make changes with the new week, month, quarter or year. This effect also comes into play with milestone birthdays – people are much more likely to run their first 5k or marathon at age 39, 49, or 59 than at 41, 51, or 61.

And while sending gifts at the same time as everyone else is often a bad strategy, great news for everyone who didn't get around to sending gifts this holiday season, blending in with the crowd and raising your prices at a time it is expected can be a great approach.

That being said, you aren't guaranteed to fly under the radar. Plenty of businesses get it wrong and find themselves with upset customers and backpedaling on reasonable price increases. Here are three common price-increase mistakes to avoid at any time of year:

1. Trying to explain why you 'had to' raise prices

These are all the messages like, "We haven't raised our prices in 12 years, but due to inflation and the rising costs of our vendors..." insert eye-roll here.

While your brain is wired to feel like you need to explain the decision, this makes the communication about you when it should be about your customer.

In general, people don't care about you and what you have been struggling with – they care about them.

And the longer the communication is before you get to the price increase, the worse it is because that anticipation is making them think "Wow...this must be really bad if they are going to all this trouble." Your overjustification is more likely to turn people off or make them upset than it is to help you.

• Easy Fix: Make the message about them, not you. What do they care about? What if it wasn't about the price? It is very possible that your customers don't even remember how much they are paying you, so you might be paying a lot of attention to something they aren't focused on. Find ways to showcase your value to them and get them excited about the future.

2. You didn't raise your prices high enough

Now, I know this one may have you confused, but hear me out. Because raising prices can feel scary, it is common to implement the least possible increase.

The problem is this myopic thinking can lead to multiple increases over time and when those come too close together it can anger customers and make them more likely to leave you.

• Easy Fix: Take the time to plan at least one year out. Is there anything that would make you need to increase your prices again that you should include now? Or does it make sense to delay and align this with new features coming later in the year?
  In my work, I have found that most people aren't charging enough for their products and services – especially those in small to midsize businesses – so you can probably increase more than you think. And, good news, research shows people value things they pay more for, so be open-minded.

3. Immediately hedge with a discount

When you're worried about the reaction to a price increase, it is common to offer a discount to offset it. More often than not, I see people use this as a crutch so the discount is more about making them comfortable with the new price than it is about the customer wanting/needing a discount.

• Easy Fix: Get anyone who is selling comfortable with the new price before they have to start saying it to customers. Your confidence is the most important thing when it comes to price integrity. The goal is to be able to say the price like it is the time of day or the weather. Don't jump to discounts to make you feel more comfortable. Instead, try this: imagine you sell water bottles. They are currently $8 each and the price is going up to $12 each. That can feel hard to communicate when your mental anchor is at $8. So, imagine you had to charge 10x more tomorrow. Once you plan through how you could sell them for $80 tomorrow, $12 will feel like a breeze.

If you're wondering, "Should I raise my prices?" the answer is probably "Yes." Now that you know the mistakes to avoid, you can confidently sell at whatever new price you land on. Happy selling.

Inc

Businesses across different sectors have lamented the worsening state of power supply in the country, which they said has forced them to rely more on alternative sources of energy. They said the alternatives are expensive, unsustainable and constitute a threat to their continued survival.

While the different distribution companies (DisCos), have given different reasons in the last few weeks to explain the continued drop in power supply to businesses and homes, industries are suffering, as they are forced to rely on diesel and petrol-powered generators to sustain production.

Managing Director of Kazih Kits Limited, Chinedu Grace Otakpor-Azih, lamented the power situation, saying it is stalling production. “We use both diesel and petrol generators, the former for day production while the latter is for overnight production. We spend about N60,000 on petrol weekly and I have lost track of what we spend on diesel but it is a lot.” She said they are currently shopping for alternatives, including switching to gas in a bid to reduce expenses.

“The power situation is very poor, sometimes, there is no power for days. How can we remain productive like this? Despite using fuel to produce, we cannot increase prices so much because the economy is bad in general and spending power has reduced but it cannot be helped again. The DisCo will still send us bills to settle despite getting little to no power. A bundle of cotton material moved from N18,000 to N50,000 in weeks; this is in addition to rising fuel costs and other operating costs, which are all shooting up as well. We are looking to source cotton locally but what is being produced locally is of far inferior quality,” she said.

A manager at Future Hope Interior Designs Limited, Dapo Salau, regretted that the electricity situation has forced them to lay off some casual staff and cut down drastically on production. Describing the power situation as worrisome, he said they use as much as N25,000 diesel daily and when they realised it was not sustainable, had to cut back on production and because of that, let some workers go. He worried that if the situation does not improve, they would be forced to completely halt production.

“The cost of materials has tripled overnight and when you factor in diesel costs, we are running at a loss. We cannot afford to raise the prices of our goods too much so as not to scare customers away. Please let the authorities in charge save our businesses and livelihood by giving us constant power, we don’t want to have to close down,” he said.

Immediate past Manufacturers Association of Nigeria (MAN) chairperson, Apapa branch, Frank Ike Onyebu, regretted that despite operating in an industrial estate, the power situation has degenerated so badly. He added that it was not surprising however as this is the dry season but lamented that the outages were too frequent and sometimes, last days. 

“We have come to accept that 24/7 electricity is a distant dream but what we are getting now is 7/24, seven hours in 24 if we are lucky as it is often less than that. Generation and transmission, in particular, is still very poor despite all the reforms the government claims to have carried out in the sector. Most of the transmission and distribution lines inherited from the defunct NEPA by the DisCos are still in use and sadly they are all obsolete. Which is why when there is a break somewhere or wind blows, the light goes off for hours or even days.”

Onyebu added that manufacturers need constant power supply but are not getting it. He noted: “In the last two weeks, we have used 30,000 litres of diesel coming to us at 1,100 per litre. This is how much we are bleeding and will worsen if the power situation is not addressed soon.” He added that the DisCos are probably not bothered about delivering service to customers because they get subsidy from the federal government. 

“Every month, our electricity bill is around 70-80 million Naira without fail, yet we still spend millions on diesel and petrol to fuel our generators. One would expect that manufacturers being charged millions would be given a little priority, yet, all we get is disregard and darkness. The situation is beyond frustrating and we are dealing with too many problems at once. If this government is serious about preventing this industry from total collapse, power must be fixed immediately,” he concluded.

The Guardian

Youths and women took to the streets in Niger State on Monday in protest of what they called the biting hardship and the rising cost of living in the country.

The protest started when a group of women blocked the Minna-Bida Road at the popular Kpakungu Roundabout to lament what they termed the sufferings under the Bola Tinubu government.

They were later joined by men and youths who barricaded the road and halted vehicular traffic.

The economic situation in the country had become unbearable following the removal of the fuel subsidy by President Tinubu on May 29, 2023.

The policy triggered a surge in food inflation and a hike in costs of transportation, goods, and services, resulting in a higher cost of living.

Also, the decision of the Central Bank of Nigeria in June 2023 to float the naira, which allows buyers and sellers to set their exchange rates in the FX market, has led to a depreciation of the national currency which has continued to lose its value against the greenback.

As of Monday, the naira exchanged for N1,440 to the US dollar on the black market while the CBN rate was pegged at N905/$1.

In reaction to the economic distress, the protesting youths and women halted commercial activities as they lamented how the economy was getting worse under Tinubu’s leadership.

A youth, who gave his name as Ibrahim Gana, said, “A measure of rice was sold for N2,000 in Minna markets while maize was N1,000 per measure. The Federal Government needs to take action to reduce the hardship faced by poor Nigerians. Things are becoming unbearable.”

The protesters defied a team of police operatives deployed to disperse them.

Attempts by the operatives to quell the protest and arrest the youths failed as they chased the officers.

The police operatives fired teargas canisters but the protesters were unmoved as they stood their ground.

Niger State Police command spokesman, Wasiu Abiodun, explained that the police applied minimum force to disperse the protesters.

He added, “I woke up this morning with information that a large number of people protesting blocked Bida Road, obstructing motorists and people were unable to go about their work. So, we had to deploy there this morning.

“After so much persuasion, they refused to open the road, even the deputy governor was there to address them. As a result of that, we had to use minimum force to disperse the protesters; the road was opened and there is free flow of traffic now.”

Commenting on the demonstration in Minna, Executive Director of the Rule of Law, Advocacy and Accountability Centre, Okechukwu Nwaguma, said he expected the protest to spread across the country “to send a message to the President to sit up or step down,” emphasising the hardship under Tinubu’s leadership.

On his part, Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, said the Minna protest could escalate if the government did not take quick measures to reduce the people’s sufferings by minimising waste and corruption.

“This protest against poverty, hunger, and hardship in Nigeria is something that if the government does not take measures to ameliorate the suffering of Nigerians may escalate everywhere because right now, living conditions are very hard and difficult for many Nigerians who are even employed, not to talk of people who are not even earning any means of livelihood.

“So, the government must ensure it has a package that could minimise waste, diversion of taxpayers’ money, extravagancy, and outright embezzlement of funds by public officials. This is the only way the government could douse the tension”, he suggested.

The Country Director of ActionAid Nigeria, Andrew Mamedu, said the protest in Niger State reflected Nigerians’ growing frustration with the government, adding that the people must unite to demand an improvement in their standard of living.

“The protest in Niger State is indicative of broader socio-economic challenges that Nigerians are facing. While we cannot predict the trajectory of the protest, it is evident that there is growing frustration among the Nigerians concerning the economic hardships they are experiencing.

‘’The hardships faced by Nigerians are not isolated to one region, and now is the time for citizens to unite, speak up against the prevailing hardships, and demand the social justice they rightfully desire,’’ he counselled.

While calling on the Federal Government to address the current economic challenges, Mamedu encouraged the citizens to conduct peaceful and purposeful protests.

“However, we encourage peaceful and purposeful protests during these trying times and ActionAid joins its voice with other Nigerians to call on the Federal Government to listen attentively to the voices of the people and take decisive actions to address the root causes of the economic challenges. Indeed, enough is enough,” he stated.

Punch