₦airaland Forum

topsy23:
Yes you are right . It might be more if we want to go by your calculation. The cost of battery alone will be around 750m .. The recent price of 1MVA caterpillar generator is over 150M . The gas type should times two of the diesel engine

I have a brand new 1.25mva prime / 1.375mva stand by Perkins generator . Not used , still not decided if to sell , paused on the installation when diesel hit 800+ And the 1mva was still serving

Funny thing was I considered getting gas generator before I purchased this diesel , space constraints and other stuffs forced my hand , capex was much higher than diesel , but you gain on the long run cos running cost is cheaper

hamtabfawaz:
Interior Kitchen setup.


Book an appointment.

Not bad at all . You’ve got some game if you designed and executed

Ades1:
I never see dollar people talk about FEES and TAXES! Cumulatively you’ll lose 10-15% to FEES and exchange rates. You’ll lose another 20-35% to capital gains or ordinary income TAX as a foreigner.

These two things will limit your performance regardless of how lucky you are with your stock picking. If you have no way of minimizing taxes and fees, abeg stick to your normal Naira investments

But make una continue to dey service Uncle Sam, they love the free money.

I do dollar funds both with gtmutual funds formerly investment one and Stanbic mutual , all the fees you mentioned does not apply at all

but if you also have good foreign assets you picked up 10 years ago when naira was trading at 170 to 190 , stocks or real estate , might still be better despite the fees , it’s not for everybody . The objective is always to build and protect wealth and diversification ensures that . A lot of opportunities abound locally also ,said that already . Let’s return to discussion on stocks

mendes911:
How many investments in Nigeria have grown tremendously in the last 5 years? What's the exact growth for those that have made progress?

If you had N30m to purchase a commercial property 10 years ago and then you had the same opportunity to to have converted that same amount to USD (about USD190k) to purchase a commercial property in the US, which of them would have been a far better investment now?

Always better to have dollar assets in your portfolio mix , it’s a no brainer ,could be dollar funds , stocks, real estate or even crypto depending on the level you play or risk appetite to hedge , been doing this close to a decade now

But I Also know people locally that there revenues are outpacing devaluation and inflation , all of them are not salary earners

Know people that buy property / land , some of there returns also ahead of devaluation , you could say same with stocks if you bought at the Covid crash of 2020

Will be good to be well diversified

robobo:
i doubt this sir. FPI knowing there is high likelihood of devaluation with the incoming administration would rather want to wait till the devaluation to get more naira for there FX (rational economic behaviour + it brings certainty instead of speculation on the devaluation ). However, what is not in doubt is that there is positive net inflow into the market, so maybe it is local institutionals trying to front load the FPI (cos they are already denominated in Naira so no gain from devaluation) .

Naira has been gradually devalued over the last 4/5 months , it’s at 635 today officially for spot from cbn if you are lucky to get allocation for lc transactions using form m , don’t know if pta/bta , form a and q are still getting at a cheaper rates

STNWAUME:
You are right ,
We saw the mismanagement of the current regine and strongly advocated for conversion of Naira to USD when exchange rate was still at sub #400

Now that dollar hovers around #750 and there will be change of govt in no distance time It won't be a bad idea to reconvert some USD and take position in NSE.

I concur, timing seems right , just sent notification for partial redemption of some dollar holdings last week , primarily to conclude a commercial real estate transaction , the rest probably to be used in the nse

FEGEITOK:
I had wanted to comment who else sees something wrong with that comment.

I am glad you have come to the rescue.

These streets explain why some people will prosper and others will forever ask "God why?"

If I needed an engineer, I would pick the lady over and above the guy you quoted.

I am sure I speak for a lot of reasonable people on this thread

Absolutely, one of the very few I would give a job to here based on my appraisal over the last 2 years

Muyesky:
Available for delivery

Very nice

dapotemi:
You and Erico submission fully captured my thought..This issue has been discussed here more than twice .. I have worked as an asst Facility mgr with a monthly budget of #60M and no one would approved a Kobo for anyone, whether you're Julius berger or baba lati to come and check a job and get paid transport...it's a form of 419 if you present such. 99% of guys here does B2C. But, from my pocket, I do give tips to workmen when I call them for an emergency work or sometime to quickly check and submit a quote and that is because getting those things done affect my KPI..The truth is, it's an individual thing. Not a rule of thumb..But the biz guys here should calm down, you are the one that wants to get a job and earned , you are the one that needs to be humble...those of us bringing the job here will also be humble when we get to where we make that money we bring here..Abi nau, I go humble for my oga for 30 days collect salary, I go come humble for you too because I want to pay you to to supply wood or paint, no nau, you sef reason am.I can give someone else...imagine if everyone gives someone else and not you, na you go humble last .. Well, I thinks it's a faceless forum tho, most of you don't act like this in REAL LIFE, atleast the ones have met

Well said , like the being humble part

Not a one size fits all situation . The truth is that in the b2c space some businesses are well established with good reputation and patronage hence can introduce conditions such as asking for transport etc , others are more desperate for customers . As long as both parties agree , don’t see the big deal , no be by force to deal nah . Not all business/transaction is for you

All this discussion does not happen in the b2b space , can’t even begin to articulate costs i have incurred in this space without closing

There is an element of risk in all business

Born2conquer:
After much procrastination, we will finally start the construction of 6 blocks of shops next week.

We thought the price of cement would go down when it was around 3500 and that was why we didn't start then but see us today, buying a bag for 4700.

Value of rent in the area: 120k to 200k for a shop
---------

We paid for 1000blocks and 40 bags of cements today. I'll keep updating everybody on the process

Better late than never . delay is always dangerous when it comes to projects in Nigeria . But the rains are here , let’s see if it will come down

EgunMogaji2:
I ventured out of my Hacienda today and was greeted with this lovely view.

You’re doing well.

Muchas gracias , behind schedule but not complaining too much

redgem:
I can't give her access to the account...this incident shows she isn't smart... Yeah, the money is gone but someone will have to pay for her carelessness...

My own advice is a bit similar to eguns

You already have a main account , open a sub account get a dedicated phone / sim that will be permanently in the shop and add to the text notification for this sub account including your own phone number , voila the shop people and you receive payment alerts , you can then from time to time sweep to the main account or use the account regularly for other things to deplete funds

Get one of this fintech company Pos , I use moniepoint , the payment is instant either by debit card or transfer , the cashiers see it immediately on the Pos themselves . Make sure to disable the transfer option from the Pos when they setup

We use both , the calling you always option is not for businesses with serious patronages or volumes

rotecch77:
Black mkt 750
All materials used were European except tiles

Was the WC Turkey ?

Epsstore:
Are you planing to set your kitchen on fire and put it on polystyrene... Paper burns more than polystyrene, polystyrene does not spread fire, if the source of the fire is removed, polystyrene will stop melting...

Don't be stuck in a cynical ideology that polystyrene is flammable, polystyrene is durable and most electrical wiring are now inside a pipe, so what's is the risks.

We must considered climate change and the effects of excessive mining of limestone on our environment, Co2 emission increasing as we demand more cement, This earth is our only home, we have to be deliberate with our construction choices... Choose eco friendly renewable polystyrene for your ceiling installation and wall Partitioning.

And the petroleum and petrochemical industry where the polystyrene is made from according to you is environmental friendly? The joke is on you my friend , take peoples Advice and market your products jeje , don’t go into areas you know nothing about

By the way , someone I know just used polystyrene for a four story commercial building still under construction at ib . Visited and was surprised , much cheaper than pop , much faster installation . Not sure I took pix , might consider for future builds

FEGEITOK:
That plus policy somersaults and the high-interest rates for financing locally makes manufacturing more attractive to foreigners who can bring in cheaper capital

Policy somersault affects everybody , correct about higher interest rates for local players compared to foreigners that get cheaper loans from there home countries , but not an excuse in my own books , u can also get single digit thru cbn and Boi interventions , can also get good rates thru commercial papers if you have prior presence and scale , major reasons are what I earlier stated in my own opinion

Forgot to add technical know how , could be a reason too

GloriousGbola:
I have come to the conclusion most Nigerians will only invest in something after it has matured as an opportunity.

manufacturing is tough and stressful , and has a longer period for recouping your investment than most other businesses , capital outlay is also significantly higher , those are the reasons Nigerians prefer other businesses to it , and why it seems there are lot of foreigners in that sector in general

Wishing everybody a healthy and prosperous 2023

A fantastic and educative thread , had the privilege of meeting topsy and Gbadexy here , for my akala project . good people ,zero complaints so far . Contacted kolanshang on some other issues also . Same with Brabus, linked me with the pop board importer I purchased from

I rejoice with people that completed there various projects this year and for people like me that have not concluded , praying for Gods provision and wisdom to conclude soonest this coming year

For people embarking on new projects , there is nothing new under the sun , arguably worse times have happened in times past to Nigeria , probably and arguably late 80s and some part of the 90s , but we must move regardless . God will bless our legitimate hustle

@ Egunmogaji , all the best , had to go thru some of your post with the comments I read here , hope this particular experience is a shaken and not stirred experience, there is so much to discourage one living in Nigeria .

babadots:
This is one of the bigger VRF systems from Midea and it must be powering quite a few indoor units.

Where did you import from and how many indoor units do you power from this?

Was it easy getting these through the ports and did you have to travel abroad to purchase them yourself or did you order online?

I think you have a lot to share with us on this, if you don't mind.

It’s not vrf , it’s normal ducted , Each unit is 12hp , from china where midea is made . I don’t do online

kopell:
Rmx I thought you’re of opinion for chillers for your huge projects, what change. Are those VRF types are of economically viable for projects like hotels or multiple units of condos?

I use water cooled chillers In my factory , for this my mall projects am using ducted split in some areas , I think that’s what it is called. Midea , imported myself . I think you can use vrf /vrv for all applications but I stuck with ducted for this my projects

babadots:
Multisplit or multi split ACs are systems that have 1 or more indoor units per 1 outdoor/external unit. This allows one to minimise the number of external ACs hanging out on walls.

They are not Central Air-conditioning Systems powering the entire house, but you can power between l and 6 units/rooms from just one Outdoor unit.

This allows you to purchase 2, 3 or 4 units to power the entire house.

They are much more energy efficient than the standard splits as they only generate output based on the demand for cooling. If you switch on the AC in one room, for example, it will only be using say 20% of the installed capacity.

We don't use it much in Nigeria because it is the next level up from split units and relatively newer in technology. I think it will become more popular with time and Solar deployments.

It’s called vrf and it’s available, seriously considered it for 2 projects , but settled for ducted split , Thot it was better for commercial , my opinion

KolaShangOne:
Should current replacement cost be the metric in determining prices? Or should it be a profit margin mark up?

If I buy a product for 4000 and my profit markup is 20%, then I should sell as 4800..

But if current replacement cost is 7,000, should I sell at 8,400 or 4,800



The major issue is this..
You have an old stock you bought 4000 naira. Because of dollar increase / replacement cost, you shoot it to 8400 immediately.

When dollar drops (which indicates drop in replacement cost, should be price not come down to reflect current situation.

Always note that a merchant does not work in isolation, he works in a dynamic market with other players and competition

From a strictly business point of view what I will do is sell at a price point slightly above the current replacement cost price of 7k . Won’t use the normal 20% . Can use 5% , so will sell at say 7350 or 7500 , the objective will always be to get funds to cover new stocks

If I have a lot of stocks can sell at an average of 4800 and 8400 for some time for traction but eventually will sell at a cost above replacement or even at replacement , it all depends on market dynamics since am not the only player and there is competition also

Note that I Also said the increase in pop cement might not even be a reaction to this current dollar shoot up , it might be to dollar increase or rate of 4 /6 months back when order was placed , and the increase of recently upto 900 if it had held , would be seen fully in another 4/6 months

Now prices also come down when the drop in dollar is sustained and for a longer period , it has happened severally before

But the one that happened recently was for week or 2 and dollar is back up at 780/800 . We are all praying it goes down

I think we should also be conscious of nbs reports , inflation is at the highest in decades . 20 to 25 % . Another report said it’s more like 50% and nbs statistics are wrong .God help us

hamtabfawaz:
My brother, it's now ₦10K.


The problem is the very greedy vendors. They use dollar as an excuse, when dollar rates reduce, instead of reducing the price of the Pop cement, they'd rather increase it, Meanwhile Some of them bought it, while dollar was a cheaper.


Na we dey do ourselves.

Just for reference , how much was dollars when they bought the current stocks being sold and how much is it now

Let me ask you also , if you had a land or 03 to 06 Corolla you bought 1 year ago and dint register , would you sell at current values or the price of 1 year ago . I think most times we complain because we are at the receiving end . Can you also direct your grievances to people selling dollar at 700 to 800 now compared to 500/600 last year

I think what must have happened is inventory of old stocks must have been low or exhausted , maybe stocks over 6 months in the country and serious adjustments just happened recently at say the dollar price of 3 to 4 months ago for newer stocks . Some might have also factored current replacement cost or use an average , not saying people will not exploit the situation further

There is absolutely nothing in Nigeria price change has not affected and it’s ongoing, weekly , monthly, it’s that bad . Raw Food , fmcg , transport , Vehicles , diesel , sand . Name one thing not affected outside petrol that is subsidized

Inception:
Dollar hype was shortlived

Dollar back to 760

Seems so . Will be clearer tomorrow

gbadexy:
What's the current rate sir.

710

zamirikpo:
I told people here not to buy dollar.....at 800 its overpriced...... .....if u didnt get in at 500 or 600, stay clear, avoid FOMO.(fear of missing out)

Then to the economics of the price of dollar, my perception is that , dollar will still hit 850, na just a matter of time. What economic indices has improved in d last one month, nothing.......the dollar will continue to appreciate.......our huge dependence on imports is killing the naira, and we export little or nothing. Crude sef na swap deal we dey do........SMH

It's just a matter of time......

Your head Dey there

It’s obvious speculations has entered and we might not be dealing with the real value of the naira at 800 plus that it got to a week ago , but the trajectory will always be upward considering fundamentals , it’s a question of time . As you Dey talk 500 to 600 , I Dey smile inside that it should have been done at 200 to 250 at the advent of this administration.

Am sure others that are wiser and older will be saying maybe accretion should have been done when it was 100 . This life . When you wake up is your morning .we all work with different time frames

topsy23:
My brother NOTHING is obeying the law of gravitational force in this country we are. Anything that goes up will hardly come down. Most of all these manufacturers depend on imported raw materials. So other manufacturers have sent their memo too.. Nigerchin gave us grace till Thursday now.

We will adjust las las and move on

Already thinking of other projects , make I just finish all the ones wey Dey my hand by his grace . Like I say if your income is static in this inflationary Enviroment, you are not in a good place

kopell:
Haa, thanks for bringing it to my attention. I don’t have my glasses on ni jare. Anyway nah my friend, he understands mine views. RMX ma binu jare. I see that thing the grown as planned I go come take one when my savings don grow reach the price.

Wetin be that o

somehow:
and not that of Zimbabwe or Venezuela.

Absolutely

hamtabfawaz:
My oga Please what's FC? For learning purpose please

Foreign currency . Good , stable ones not like cedis

somehow:
A good thing for those building from outside, a nightmare to those building from inside except if your income stream is from outside.

Not entirely correct , it’s possible your local income stream is ahead of inflation and devaluation

People on fixed salary will struggle

For people abroad they are also coping with unprecedented inflation , and local cost of building materials goes up in correlation with dollar/Fc increase also

But always better to have some assets , investment or savings in FC

gbadexy:
The external finish from an esteemed propertylander.
I got a satisfied customer as usual that got value for his money.
The camera angle and timing captures the essence of a matte finish. I've seen people post what I would tag premium emulsion gotten from expensive brands..
You don't need to break your vault to get good quality paints. We are affordable quality.

Congrats to you and the propertylander , but this combo with tiles …….