A Review of the Nigerian Energy Industry

Nigeria to spend $950m on generator imports by 2020

06 April 2013, Lagos – Global research firm, GBI, says generator importation in Nigeria will reach $950.7 million (about N151.16 billion) by 2020.

The group said in a recent reasearch report that Nigeria, the largest market for diesel and gas generator sets in Africa, will see importation grow by 8.7 per cent.

This, it said, will drive up market volume from N71.55 billion ($450 million) in 2011, to N151.16 billion ($950.7 million) by 2020.

The research firm expects the growth in the Nigerian generator sets market to be driven by the epileptic power situation in the country going by the current state of power generation, power transmission and distribution networks, along with the economic growth in the country.

“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,” said Aman Madhok, energy analyst at GBI Research.

According to him, Nigeria is a profitable market for manufacturers of generator sets, especially with imports of the products increasingly coming from China and the United Kingdom.

“The Nigerian market provides considerable opportunities for generator set manufacturers, with good growth recorded between 2006 and 2011, although it experienced a slight decline in 2009 after reaching a peak of N65.476 billion ($411.8 million) in 2008.

“The extent of market growth for gas generator sets in Nigeria depends upon the timely implementation of a gas infrastructure in the country,” he added.

In 2007, according to him, only around 15 of the 79 power stations in Nigeria were fully functioning, disclosing that most of the power stations were built in the 1970s and 1980s.

The report said low gas prices and an abundance of available gas are two major drivers for gas generator sets in Nigeria, adding, however, that a lack of adequate gas infrastructure in the country acts as a major hindrance for gas generator sets in Nigeria.

It added that despite the fact that the use of gas generators is on the rise, the Nigerian generator set market is still dominated by diesel generators.

Madhok noted that gas generators currently contribute only a fraction of market total revenues in the Nigerian market.

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  • The government can turn this shame into gain by ensuring that generator importers assemble them locally and create jobs. Down the road parts can also be manufactured locally. Nigeria’s energy policy must be comprehensive, coherent and capable of attracting investment.

  • The government can turn this shame into gain by ensuring that generator importers assemble them locally and create jobs. Down the road parts can also be manufactured locally. Nigeria’s energy policy must be comprehensive, coherent and capable of attracting investment.

  • The government can turn this shame into gain by ensuring that generator importers assemble them locally and create jobs. Down the road parts can also be manufactured locally. Nigeria’s energy policy must be comprehensive, coherent and capable of attracting investment.

  • The government can turn this shame into gain by ensuring that generator importers assemble them locally and create jobs. Down the road parts can also be manufactured locally. Nigeria’s energy policy must be comprehensive, coherent and capable of attracting investment.

  • The government can turn this shame into gain by ensuring that generator importers assemble them locally and create jobs. Down the road parts can also be manufactured locally. Nigeria’s energy policy must be comprehensive, coherent and capable of attracting investment.

  • The government can turn this shame into gain by ensuring that generator importers assemble them locally and create jobs. Down the road parts can also be manufactured locally. Nigeria’s energy policy must be comprehensive, coherent and capable of attracting investment.