If Nigeria still lacks steady power supply in 2020, importation of generator would have grown to about N151.16 billion ($950.7 million), according to data published by a global research firm, GBI Research.
According to the research firm, Nigeria which is the largest market for diesel and gas generator sets in Africa, is forecast to see growth rates of 8.7 per cent driving up market volume from N71.55 billion ($450 million) in 2011, to reach N151.16 billion ($950.7 million) by 2020.
GBI 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,” Aman Madhok, Energy Analyst, GBI Research, said.
Madhok stated that Nigeria is seen as providing 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,” he said.
