Justrite’s Energy Costs Surged Over 500% in 2022—Chairman

By Dipo Olowookere

The Chairman of Justrite Superstore, Mr Ayodele Patrick Aderinwale, has disclosed that the company’s energy costs in 2022 significantly increased by more than 500 per cent.

Speaking on Friday on Arise TV’s Global Business Report hosted by Mr Aruoture Rotus Oddiri, the Justrite chair said this surge in energy costs was triggered by the rise in the price of diesel in the year under review.

At the beginning of the year, a litre of diesel was selling between N200 and N250, but by the end of the first quarter of 2022, it was going for N650 per litre and later jumped to N800 per litre.

This increase was blamed on the invasion of Ukraine by Russia in February 2022. The price has not moderated to the pre-war period, forcing many companies to source cheaper energy.

But Mr Aderinwale said the company was making efforts to cut these energy expenses, especially with the funds raised from the sale of a minority stake in Justrite to Africinvest recently.

“Last year, our energy costs increased by over 500 per cent and don’t forget that energy is part of our major operational costs. You have to have electricity 24 hours because you cannot afford to be in the dark; that is why we have to embrace solar energy,” he said on the programme monitored by Business Post on Friday morning.

Speaking further, he said, “It is interesting that you raised this issue of renewable energy. One of the things we agreed with Africinvest is that from now henceforth, all our new stores to be opened would be powered solely by solar and the existing 17 stores would be integrated with solar energy.”

He expressed optimism that Justrite would gain immensely from the experience of Africinvest because of its rich pedigree on the continent.

According to him, Africinvest “is not just coming with money, it is coming with insight, corporate governance, repositioning of the company and all manners of strategies.”

“Before they made the final investment, they went through the due diligence process, both legal and commercial, to check the gaps and prospects of the company before signing the deal,” the chairman said.