Nigeria Construction Firms Grow Profits By N3.97bn

Nigerian construction companies’ profit before tax increased by N3.97 billion in the first half of 2022. Despite mounting worries about the inflation rate’s continued rise, Julius Berger Plc. and Arbico boosted their profit before tax from January to June 2022 to N3.97 billion. In the same 2021 six-month period, both businesses generated N6.114 billion.

In contrast to what was reported in 2021, Julius Berger and Arbico increased their profit before taxes by almost N3.97 billion in 2022, with the former bringing home N3.864 billion. In contrast to the N6.01 billion Julius Berger reported in 2021, the business had a 64% growth in 2022, bringing in N3.864 billion in profit before taxes.

Additionally, Arbico saw a 14.4% increase, going from N708 million in the first half of 2021 to N811 million in the same period of 2022. The PBT of UPDC Real Estate Investment fell by 7.3% in the meanwhile.

From January to June of 2021, the firm generated N583m, but from N583.2m to N540.6m in 2022, it fell short of N42.59m.

The Central Bank of Nigeria increased its benchmark lending rate by 150 basis points to 15.50% in an effort to curb inflation, making it the highest level since the policy’s introduction in 2006.

The National President, of the Estate Rent Commission Agents Association of Nigeria, Mr Godwin Alenkhe, said the construction industry would not be analysed within the prism of economic indices.

Alenkhe explained that the building of infrastructure was a major component of development in any country.

“The fact is that when you look at the sector, it cannot be predicted on the premise of statistics and economic indices,” he said.

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