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Only Government Can End Building Collapse -Experts

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Housing - Investors King
  • Only Government Can End Building Collapse, Say Experts

Except the government makes a commitment to go tough on enforcement of relevant laws, the scourge of building collapse may not end soon, experts in the built environment have said.

They noted that the cause of the recent collapse on Lagos Island which claimed no fewer than 20 lives was not different from the causes of previous ones in the same area and other parts of the state as well as the entire country.

Some of the building construction experts, who spoke with The PUNCH, lamented that the menace of building collapse had remained because the regulatory bodies lacked the will to enforce laws.

They explained that while the issues had been overflogged and the causes known to almost everyone in the society, only the government had the power to go tough on errant developers, landlords, traditional rulers, thugs or anyone found contravening planning laws or engaging in activities that could lead to the collapse of a building.

“I have visited several sites of collapsed buildings on Lagos Island, these buildings have similar causes and the major reason is that the buildings were not properly constructed. When you talk of quality, many of them were lacking in the area of workmanship and material. Lagos Island also, especially this Ita Faaji area, used to be a swampy area which should not take five-storey buildings,” the 1st Vice -President of the Nigerian Institute of Building, Mr Kunle Awobodu, said.

Awobodu, a former President of Building Collapse Prevention Guild, described the problem of building construction on Lagos Island as huge, adding that those in the government knew the unfortunate situation.

“So how could a serious government official allow some kind of development in that area, I believe it is either as a result of compromise or they have some other issues we don’t know about. When you talk about regulations, I think there has been so much negligence. The government has tolerated illegal development. Regulation failed or became too tolerant to have encouraged shoddy development,” he said.

He stated that as a matter of urgency, the Lagos State Government should suspend construction of any kind of building, especially residential on Lagos Island to forestall more disasters.

The President, Nigerian Institute of Structural Engineers, Mr Eddy Atumonyogo, said there had been a lot of actions and inactions on the part of the government and other stakeholders that had promoted collapse of buildings.

“If faulty designs are approved for construction, there will be a collapse. If design standards are not enforced during construction, there will be a collapse. If fake materials are not detected and are used in construction, it will lead to a collapse,” he explained.

On March 13, a four-storey building on Massey Street, Ita-Faaji, Lagos Island, collapsed in the early hours of the day, killing at least 20 pupils and other tenants, with many others injured.

The incident was one of several cases in the area and in Lagos as a state as well as other parts of the country.

It is estimated that there had been over 100 cases of building collapse in the last seven years with Lagos recording the highest number of both collapsed buildings and number of casualties.

According to Awobodu, the persistency of building collapse in Nigeria brings to fore two categories of failure: those buildings that lacked durability due to past construction errors and buildings that collapsed before maturity, under construction due to design error or substandard human and material resources.

He stated that the cost of conducting structural integrity test and subsequent demolition remained a major reason why old buildings still collapsed and killed occupants while circumvention of due process was responsible for the collapse of buildings under construction.

A Past Chairman, Nigerian Institute of Builders, Lagos State Chapter, Mr Olatunde Jaiyesinmi, said if the government was serious about curbing the problem of building collapse, the professionals in the built environment should be listened to.

“The laws setting up these professional bodies specify their roles in the industry. If these roles are adhered to, building collapse will be minimised if not eliminated,” he said.

Jaiyesinmi, who is also a former chairman of the Nigerian Society of Engineers, Lagos Branch, said about 11 years ago, the then governor of Lagos State had assembled all professionals in the built environment and charged them to proffer solutions to the issue of building collapse.

“Solutions were proffered, but government had no will power to implement them,” he added.

Atumonyogo, however, stated that apart from the government which had a major role to play in enforcing building regulations, there were other actors in the industry such as developers that also needed to act responsibly.

Awobodu stated that some of developers had said they did not have confidence in most of the buildings they ignorantly constructed in the past.

He said such builders had said they would not mind a situation where such buildings could be pulled down for safety purposes but the challenge had always been who would bear the cost of demolition and where the occupants of such building would be accommodated.

But apart from developers, the experts also called on the government to pay more attention to manufacturers and importers of building materials.

They alleged that some importers of building materials were guilty of encouraging factories in China to produce low quality materials that did not conform with the specifications of standard building materials.

The President, Nigerian Institute of Town Planners, Mr Lekwa Ezutah, said no aspect or detail of building construction should be treated with levity.

“All legislative provisions must be reviewed by the National Assembly and strictly observed, failing which appropriate sanctions must be meted to defaulters,” he said.

On the way forward, the experts said the government especially the Lagos State Government should intensify effort towards urban regeneration in older parts of the city such as on Lagos Island, and also employ more officials to monitor construction of new buildings as well as renovation of older ones.

“The government should find a way of relocating the residents in the areas around Lagos Island towards urban regeneration. It requires huge financial resources because you can’t demolish people’s buildings without providing alternative accommodation but it has to be done. If not, more buildings will still collapse,” Awobodu said.

Ezutah opined that the government, as a matter of urgent necessity, should commission professional planners to carry out in-depth studies of cities with a view to recommending sustainable policies and plans to address the matter.

He stated that cities were the engines of growth in any society; hence matters that affected their viability and liveability should be priorities to the government and all stakeholders.

He also called on the professionals who either build or undertake to supervise buildings on the need to verify the brand, quality, and quantity of materials used for buildings.

“Professional bodies need to step-up in their responsibilities to sanction members who compromise standards. The implementation of Site Analysis Report and Environmental Impact Assessment are to be strictly undertaken for every development,” he said.

Atumonyogo also called on the governments at all levels to ensure they had registered structural engineers in the building approval and control agencies.

“They must ensure that buildings above two floors, and buildings to be erected on poor soil, must be designed and supervised by registered structural engineers. Legislation must be passed to back up this practice. Structural engineering is a specialist branch of civil engineering. We have had enough of these avoidable deaths and the time to act is now,” he added.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

DR Congo-China Deal: $324 Million Annually for Infrastructure Hinges on Copper Prices

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In a significant development for the Democratic Republic of Congo (DRC), a newly revealed contract sheds light on a revamped minerals-for-infrastructure deal with China, signaling billions of dollars in financing contingent upon the price of copper.

This pivotal agreement, signed in March as an extension to a 2008 pact, underscores the intricate interplay between commodity markets and infrastructure development in resource-rich nations.

Under the terms of the updated contract, the DRC stands to receive a substantial injection of $324 million annually for infrastructure projects from its Chinese partners through 2040.

However, there’s a catch: this funding stream is directly linked to the price of copper. As long as the price of copper remains above $8,000 per ton, the DRC is entitled to this considerable sum to bolster its infrastructure.

The latest data indicates that copper is currently trading at $9,910 per ton, well above the threshold specified in the contract.

This bodes well for the DRC’s ambitious infrastructure plans, as the nation seeks to rebuild its road network, which has suffered from decades of neglect and conflict.

However, the contract also outlines a dynamic mechanism that adjusts funding levels based on copper price fluctuations.

Should the price exceed $12,000 per ton, the DRC stands to benefit further, with 30% of the additional profit earmarked for additional infrastructure projects.

Conversely, if copper prices fall below $8,000, the funding will diminish, ceasing altogether if prices dip below $5,200 per ton.

One of the most striking aspects of the contract is the extensive tax exemptions granted to the project, providing a significant financial incentive for both parties involved.

The contract stipulates a total exemption from all indirect or direct taxes, duties, fees, customs, and royalties through the year 2040, further enhancing the attractiveness of the deal for both the DRC and its Chinese partners.

This minerals-for-infrastructure deal, centered around the joint mining venture known as Sicomines, underscores the DRC’s strategic partnership with China, a key player in global commodity markets.

With China Railway Group Ltd., Power Construction Corp. of China (PowerChina), and Zhejiang Huayou Cobalt Co. holding a majority stake in Sicomines, the project represents a significant collaboration between the DRC and Chinese entities.

According to the contract, the total value of infrastructure loans under the deal amounts to a staggering $7 billion between 2008 and 2040, with a substantial portion already disbursed.

This infusion of capital is expected to drive socio-economic development in the DRC, leveraging its vast mineral resources to fund much-needed infrastructure projects.

As the DRC navigates the intricacies of global commodity markets, particularly the volatile copper market, this minerals-for-infrastructure deal with China presents both opportunities and challenges.

While it offers a vital lifeline for infrastructure development, the nation must remain vigilant to ensure that its long-term interests are safeguarded in the face of evolving market dynamics.

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Economy

Fitch Ratings Raises Egypt’s Credit Outlook to Positive Amid $57 Billion Bailout

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Fitch ratings

Fitch Ratings has upgraded Egypt’s credit outlook to positive, reflecting growing confidence in the North African nation’s economic prospects following an international bailout of $57 billion.

The upgrade comes as Egypt secured a landmark bailout package to bolster its cash-strapped economy and provide much-needed relief amidst economic challenges exacerbated by geopolitical tensions and the global pandemic.

Fitch affirmed Egypt’s credit rating at B-, positioning it six notches below investment grade. However, the shift in outlook to positive shows the country’s progress in addressing external financing risks and implementing crucial economic reforms.

The positive outlook follows Egypt’s recent agreements, including a $35 billion investment deal with the United Arab Emirates as well as additional support from international financial institutions such as the International Monetary Fund and the World Bank.

According to Fitch Ratings, the reduction in near-term external financing risks can be attributed to the significant investment pledges from the UAE, coupled with Egypt’s adoption of a flexible exchange rate regime and the implementation of monetary tightening measures.

These measures have enabled Egypt to navigate its foreign exchange challenges and mitigate the impact of years of managed currency policies.

The recent jumbo interest rate hike has also facilitated the devaluation of the Egyptian pound, addressing one of the country’s most pressing economic issues.

Egypt has faced mounting economic pressures in recent years, including foreign exchange shortages exacerbated by geopolitical tensions in the region.

Challenges such as the Russia-Ukraine conflict and security threats in the Israel-Gaza region have further strained the country’s economic stability.

In response, Egyptian authorities have embarked on a series of reform efforts aimed at enhancing economic resilience and promoting private-sector growth.

These efforts include the sale of state-owned assets, curbing government spending, and reducing the influence of the military in the economy.

While Fitch Ratings’ positive outlook signals confidence in Egypt’s economic trajectory, other rating agencies have also expressed optimism.

S&P Global Ratings has assigned Egypt a B- rating with a positive outlook, while Moody’s Ratings assigns a Caa1 rating with a positive outlook.

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Economy

Fitch Ratings Lifts Nigeria’s Credit Outlook to Positive Amidst Reform Progress

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fitch Ratings - Investors King

Fitch Ratings has upgraded Nigeria’s credit outlook to positive, citing the country’s reform progress under President Bola Tinubu’s administration.

This decision is a turning point for Africa’s largest economy and signals growing confidence in its economic trajectory.

The announcement comes six months after Fitch Ratings acknowledged the swift pace of reforms initiated since President Tinubu assumed office in May of the previous year.

According to Fitch, the positive outlook reflects the government’s efforts to restore macroeconomic stability and enhance policy coherence and credibility.

Fitch Ratings affirmed Nigeria’s long-term foreign-currency issuer default rating at B-, underscoring its confidence in the country’s ability to navigate economic challenges and drive sustainable growth.

Previously, Fitch had expressed concerns about governance issues, security challenges, high inflation, and a heavy reliance on hydrocarbon revenues.

However, the ratings agency expressed optimism that President Tinubu’s market-friendly reforms would address these challenges, paving the way for increased investment and economic growth.

President Tinubu’s administration has implemented a series of policy changes aimed at reducing subsidies on fuel and electricity while allowing for a more flexible exchange rate regime.

These measures, coupled with a significant depreciation of the Naira and savings from subsidy reductions, have bolstered the government’s fiscal position and attracted investor confidence.

Fitch Ratings highlighted that these reforms have led to a reduction in distortions stemming from previous unconventional monetary and exchange rate policies.

As a result, sizable inflows have returned to Nigeria’s official foreign exchange market, providing further support for the economy.

Looking ahead, the Nigerian government aims to increase its tax-to-revenue ratio and reduce the ratio of revenue allocated to debt service.

Efforts to achieve these targets have been met with challenges, including a sharp increase in local interest rates to curb inflation and manage public debt.

Despite these challenges, Nigeria’s economic outlook appears promising, with Fitch Ratings’ positive credit outlook reflecting growing optimism among investors and stakeholders.

President Tinubu’s administration remains committed to implementing reforms that promote sustainable growth, foster investment, and enhance the country’s economic resilience.

As Nigeria continues on its path of reform and economic transformation, stakeholders are hopeful that the positive momentum signaled by Fitch Ratings will translate into tangible benefits for the country and its people.

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