Business

August 22, 2018

Top generator brands compete with new features amidst growth

Electricity: Nigeria installs first commercial undergrid minigrid power project in Makoloki

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By Princewill Ekwujuru

Ten generator brands have upgraded their products with new features aimed at attracting additional share of a growing market. With average power generation mostly below 4,000MW in the face of power demand estimated to be above 10,000MW, most homes and organisations are increasingly relying on petrol and power generators for electricity supply.

electricity

This in addition to population growth, business expansion as well as increasing number of new businesses, is driving increased demand for and sale of generators across the country.

In addition, due to lack of firm power grid infrastructure, rural electrification has become a major challenge for Nigeria. Many villages in Nigeria still rely on petrol or diesel generators for power supply.

A report by the Centre for Global Development noted: “At present, almost 40 per cent (80 million) of the Nigerian population has no access to grid-connected electricity. In 2015, power supply in Nigeria averaged 3.1 GW, whereas the country’s demand was more than three times the supply.”

This offers prospects to generator companies to serve rural areas with better and more reliable power systems. Large and international vendors are dominating the residential generator segment.   Many local and regional vendors are storming the market with low-cost options for both residential and commercial users.

While there are many brands in their market, Vanguard’s Companies & Market investigations showed that 10 brands dominate consumer preference and most of the market share.

The brands dominating the corporate /commercial segment of the market are Mikano, Cummins, Perkins, FG Wilson and CAT, while the residential or domestic category is dominated by Firman, Elepaq, Elemax, Lutian and Sumec firman.

In a bid to consolidate their hold on the market, these brands have introduced varieties of products with different capacities to suit the pockets of the various income brackets of the population. This include new model generators with remote control, sound proof and automatic switch-over mechanism when power is cut off, as well as generators with key and button starters.

Consumers speak

Most consumers in the corporate/commercial category that spoke to C&M indicated preference for CAT, Mikano, Cummins, Perkins and FG Wilson. Ephraim Osuji, an electrical engineer with Mos Investments Enterprises who are into Warehousing service said: “We use the Mikano brand. I think it is convenient for us, it is reliable and their after sales service is great.”

Another electrical engineer, Columbus Ighodalo of Bosus Nigeria Enterprises said: You are sure of 24/7 guarantee, if you use CAT.”

Ariola Igbalode, a pig farmer said: “From what I noticed, Cummin is a quality generator with superior local support, it is environment-friendly. It is a power of one with all critical components made by Cummins. It has the lowest operating cost,  reliable, durable and  dependable, super silent and comprehensive warranty cover for two years with extended warranty options.”

Ife Olayinwola, a consumer who lives in Egbeda area of Lagos said: “Firman generator is a good product and I have  not had any problem with it since using it. Like other good products, capacity to carry various items in the house endeared me to the brand.”

Madam Ifeyinwa Akudobi of Gentle Souls Restaurant, Ojo, Ojo Local Government Area of Lagos said: “I use Elepaq, it has served me for some time now. What I have been doing is change the oil when it is due and it starts working again.”

Distributors speak

Managing Partner of Amorus Enterprises, Chief Ozioko Abamji said: “Business is good and this is occasioned by the power outage in the country over the past few years. The increase in power consumption in Nigeria, coupled with inadequate power generation capacity and grid infrastructure, has made steady power supply a serious challenge and that has helped the demand for the products.   Most generator products are doing well. It depends on the brand you want.”    Also speaking, Philip Okaro of Mike Merchandise Enterprises, Alaba International Road, Ojo, Lagos said: “There is nothing wrong with cheaper Chinese products mind you. The Chinese can produce great generators to the standard requested. If the standard requested is poor, however, – then you will end up with inferior products.”

Expert speaks

The generator, like every household appliance, has its peculiar challenges.

According to Bound Engineering Manager, Lagos–Badagry Expressway, Ofurum James: “Most of the major sellers do re-badge their generators (especially domestic generators). However, because of quality assurance and sourcing, this is not an issue. Problems occur when unscrupulous importers buy the cheapest of the brands and re-badge them to make them look like quality brand.”

Akinwale    Amusan, a generator repairer at Old    Ojo Road, Navy Town, Lagos said: “Not all generators are created equal. While there are companies that provide the highest quality generators that meet all standards and required performance, many importers source for cheap products and sell them to the Nigerians.

Some do not know generators and think they are offering good deals. Others purposely try and cheat people. Either way, it’s not good for you, the customer.”