By Chiamaka Ajeamo, with agency reports…
NIGERIA recorded a significant decline in the sale of air conditioners in 2015, according to a report by Research and Markets.
The report released yesterday, blamed the decline on the dwindling oil prices and weak economic conditions in Nigeria.
However, the report stated that the air conditioner market is expected to grow at a compound annual growth rate (CAGR) of 5.7 percent within 2016 to 2022.
The report is basing its projection on expectations that the economy would regain growth in the next two years, which would drive several infrastructure development activities in the country.
Also, it stated that government initiatives to improve the economy of the country, rising investments and expanding urban population with developing income level are acting as the key drivers for growing air conditioners market in Nigeria.
The report noted that with the intensifying construction activities in residential and commercial sectors, the market is expected to register growth in the coming years.
It said “Over the next six years, the centralized air conditioner market is estimated to grow at a healthy growth rate owing to increasing construction activities in commercial sector.
“Southern region of the country is the key revenue generating region in the overall market. Lagos city has led growth of the southern region ahead northern region.
“Also, with upcoming mega projects in the city demand for higher tonnage air conditioners would surge” the report stated.