NIGERIA imported a total of 28,678 power-generating units worth over $185.5 million (about N40.8 billion) in 2014, according to the latest data provided by PowerGen Statistics.
Besides, importation of generator sets in Nigeria is forecast to see growth rates of 8.7 per cent driving up market volume from $450 million in 2011 to reach $950.7 million (N209 billion) by 2020.
According to African Review, Nigeria is facing a major power crisis and this is a direct result of insufficient power generated by the Power Holding Company of Nigeria (PHCN), reports have suggested.
It noted that the crisis, coupled with high economic growth in the country, is the main factor driving growth in the diesel genset market. High demand for gensets is coming from industries across the board. The Nigerian genset market is, therefore, entering a period of steady growth, the report added.
“Growth in the Nigerian genset market will be driven by the expansion of the telecommunications sector. Telecommunications are among the fastest growing end user sectors of gensets in the country even as other end users such as manufacturing, commercial, construction and oil and gas sectors register strong growth,” Research and Markets noted.
A key issue is the absence of quality control regulations in the region. This is proving to be the major challenge for original equipment manufacturers (OEMs).
The market is flooded with gensets of varying quality and, hence, varying prices as a direct result of the lack of quality control regulations in Nigeria. As the demand for gensets is set to gradually rise in parallel with the country’s economic growth, more equipment suppliers are entering the market.
Meanwhile, import of generator sets in Nigeria is forecast to see growth rates of 8.7 per cent driving up market volume from $450 million in 2011 to reach $950.7 million by 2020, global research firm GBI Research indicates. Aman Madhok, energy analyst at GBI Research, said, “Sustained growth is driven by increasing electricity consumption, which has been growing at eight per cent per annum over recent years, and the inability of the Power Holding Company of Nigeria (PHCN) to supply adequate power to meet demand.”