Generator sales are expected to hit $1 billion by 2020 according to research analysts who cover the power sector.
“Sustained growth is driven by increasing electricity consumption, which has been growing at eight percent 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, an Energy Analyst working with GBI research.
The firm published a research highlighting the expected growth in the importation of generator sets into Nigeria mainly from China and the United Kingdom. According to the report, the failure of the Nigerian Energy Sector has made the country the largest market for diesel and gas generator sets in Africa.
It added that only 15 of the 79 power generating stations in Nigeria were fully functioning, and most of the power stations were established in the 1970s and 1980s.
Madhok stated that market growth for gas generator sets was driven up by 8.7 percent in 2011 with a market volume of N71.55 billion. This is expected to reach N151.16 billion by 2020. He added that the Nigeria market provides considerable opportunity for generator set manufactures, with good growth recorded between 2006 and 2011, although it experienced a slight decline in 2009 after reaching a peak of N65.476 billion in 2008.