Self-service generators have always proven to be a viable alternative for households, small businesses, and large companies in Nigeria, where Electricity supply is erratic and power outages occur frequently. Businesses rely on generators as Alternative Energy sources to keep their daily operations running. However, this reliable backup power solution is becoming a luxury, leaving both vendors and buyers in a tough situation. As economic woes intensify, consumer purchasing power drops and generator dealers lament about poor market sales. According to findings, individuals are losing interest in purchasing big generators because of its exorbitant costs.
Findings also revealed that, depending on the model and location, the average the price of 11kV generators ranges from ₦700,00 to ₦750,000, while 8kV are priced between ₦610,000 and ₦650,000, 3.3kV between ₦450,000 and ₦400,000, and 2.8kV between ₦350,000 and ₦390,000. Small businesses in Nigeria mostly rely on generators like the 11kV and 8kV models to keep operations operating due to the country’s unreliable power supply. Several factors have contributed to the price increase, including import limitations, volatile foreign exchange rates, high import taxes, Naira Devaluation and inflation.
Issues with power outages still persist in the country.
Dealer sales have reportedly decreased as many households and businesses find it hard to purchase these generators due to the price increases. At the same time, the inflated price of fuel for power generators presents additional operating costs for small enterprises, which predominantly depend on loans. In Nigeria, the average cost of petrol is currently around ₦769 per litre. Due to Logistics and other considerations, the pricing may differ based on the location ranging from ₦690 to ₦780 per litre. For diesel, the average cost is about ₦1,404 per litre.
Hence, whether businesses or households use diesel or petrol-powered generators, the expense is still high. These costs are a reflection of both the impact of numerous economic issues in Nigeria as well as the continuous Volatility in the fuel market. The nation still barely produces 4,500 MW of electricity for over 200 million people, in spite of government initiative to increase power generation. Issues with power outages still persist as the nation’s national electricity grip has already collapsed four times in 2024. The last collapse happened on July 6, 2024, causing a major decrease in power generation. Businesses that require uninterrupted power must frequently come up with alternatives due to this shortage of supply.
Solar power has become a popular choice for the majority.
Since many businesses rely on generators for continuous power supply, the recent hike in price not only affects the dealers but also the overall economy. Adebayo Adelabu, Nigeria’s Minister of Power, had revealed plans to boost generation capacity to 6,000MW. This might not completely resolve the fundamental problems, though. Ayodele Oni, an Energy expert, stated that Nigerians will likely need to depend on generators for a considerable amount of time as 6,000MW is insufficient to meet the country’s demand—at least for the next ten years. Oni claims that the country’s longstanding energy shortage cannot be resolved by the anticipated increase in power generation.
Continued struggles with Power Supply have led the country’s alternative power supply landscape to swiftly change. Given the country’s abundance of sunlight, solar power has become a popular choice for the majority. Solar Panels and systems are being adopted by the residential and business industries at an increasing rate. Several efforts are also underway to increase electrification in rural regions by bringing off-grid solar alternatives. Likewise, an increasing number of commercial and residential enterprises are incorporating battery storage into their Renewable Energy setups as battery Technology advances.
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The resulting solution facilitates the storage of extra energy produced during the day for usage at night or in the event of a power outage. Mini-grids are becoming more popular, especially in isolated and underdeveloped areas. More dependable electricity can be produced by these systems, which can connect to the main grid or run independently. To deal with power outages, groups and government initiatives are encouraging the creation of mini-grids. These trends bolster the country’s efforts to transition to more reliable and environmentally friendly power alternatives.