Julius Berger Nigeria Plc has said increasing logistics costs occasioned by the Russia- Ukraine war and the COVID-19 pandemic have impacted negatively on the construction sector in Nigeria.
The managing director of the construction giant, Engr Lars Richter, who revealed this during the company’s 52nd Annual General Meeting (AGM) as contained in a statement issued by Barr Moses Duku, said the war and the pandemic caused supply chain disruptions, with prices soaring for essential building materials like steel, sand and wood.
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Richter said, “For us in Nigeria, the higher cost of diesel, combined with fuel scarcity, has led to another layer of price increase…and extraordinary surge in transport costs.”
Dr Richter informed shareholders that the greatest and most hard-hitting challenge the company continued to face was the sustained shortage of forex, describing the scarcity as “a critical crisis which has persisted with far-reaching negative impacts on the economy generally and on Julius Berger specifically as it creates major and substantial financial losses.”
He, however, disclosed that the management of the company was able to put in place robust, resilient and business continuity planning; providing preparation and strategies to navigate the key risk.
Despite the challenges, Julius Berger’s chairman, Mr Mutiu Sunmonu (CON), said the company excelled through management, hard work and commitment of its staff.
He said, “Within our core construction business, we made meaningful progress across our portfolio of private and public projects.”
He listed the projects to include the International Worship Centre, Uyo, Akwa Ibom State; the Office of the National Security Adviser, Abuja; the Bodo-Bonny Road, as well as infrastructure projects in Lagos and in Rivers states.
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