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The Nigerian diesel genset market will record a 4.1% growth between 2019 and 2024, according to a new study conducted by research firm Prescient & Strategic Intelligence.

Revenue generation within the market is expected to reach $527.4 million during the forecast period.

Factors driving the genset market growth include the need to address substantial energy transmission losses, deficiency of high base power, and increasing demand for electricity for commercial, residential, and industrial applications.

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Consumers are increasingly relying on diesel generators to meet their energy needs.

Nigeria is facing a huge gap in energy demand and supply due to:

  1. Aging energy transmission and distribution systems unable to efficiently supply the required capacity
  2. Energy demand outrunning local generation

In 2018, energy demand in Nigeria was 40,000MW of which the country was only able to produce between 7,000MW and 8,000MW mark.

Charlie Farrow, managing director of Welland Power Diesel Generators said, "Nigeria has been a major market for diesel generators for the last 40 years and the current demand gap demonstrates that this is unlikely to change anytime soon."

Farrow added: "There are issues not just with generation, but also with transmission. Nigeria has the largest population in Africa, making the problem not only uniquely difficult to solve, but also imperative that it is given additional resources to drive economic growth. Perkins powered generators are currently the first choice in Nigeria, but imports from China are growing due to their low cost. The market is likely to continue to swing to the far east."

Based on application, in 2018 the industrial genset sector dominated other segments, namely residential and commercial.

In addition, the proposed Economic Recovery and Growth Plan (ERGP) of the Nigerian government is projected to attract huge investments in the manufacturing sector, thereby, encouraging the adoption of diesel gensets for operations and setting up of various industries.

The industrial sector generated more than 40% of the market’s total revenue.

This can be attributed to the huge demand for comparatively expensive high-power generator sets in the industrial.