Daily watch – Power generation falls further, Housing construction hits 5- year high

26th February 2016

  • Power generation has fallen to 3,697MW. The current power generation profile was against the peak of 5,074MW achieved earlier this month. Data obtained from the Presidential Task Force on Power yesterday put the power generation at 3,697 MW, while only 3,625MW was sent out. The daily operations report of the Transmission Company of Nigeria showed that several challenges were trailing the process of generation and evacuation of power in the country. The report, which gave the positions of the generation plants and transmission lines across the country as at Tuesday, showed that unused generation capability was 1,922MW. While about 1,773.5MW was lost to gas constraints, and 149.6MW was lost to transmission line constraints.
  • Despite a tough macro-economic and political environment which characterised 2015, residential housing supply to the property market within the year, reached an five-year high of 3,928 new housing units, which was 15 percent higher than the previous year’s output, estimated at 2,523 units. This is considered the highest housing supply in the last five years, lending credence to analyst’s submission that new supplies contribute significantly to the high vacancy rate, which the housing market has seen in the last six to 12 months. Lagos, got an estimated 3,929 new units.
  • Citigroup has said that deals in Nigeria have plummeted because investors are too scared to spend money when it’s expected that the naira will have to be devalued. This year there have been 12 deals valued at $1.45 billion compared with a year ago when there were 19 deals worth $5.62 billion, according to data compiled by Bloomberg. Citigroup however said Nigerian deal making could pick up in 2017 as low valuations attract buyers.