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Friday, October 18, 2024

Price Of Generators Remain High

As power outages have since become part of life in the country, use of generators became a practical solution for many households, small businesses and companies, but the latest development is that they are now beyond the reach of many, leading to low patronage of the alternative power sources.

Investigation carried out in various generator shops around the state encountered worried faces of dealers, many of whom had only a handful of customers demanding the product.

It was attributed to high inflation, general high cost of doing business and hefty import tariffs, all of which are worsened by the devaluation of naira. For business owners who depend on these generators to keep their businesses afloat, the rising prices of generators are a harsh reality.

An 11 kilovolts (kV) generator, once affordable to many, now costs between N700, 000 and N750, 000, a recent market survey revealed.  Subsequently, the familiar hum of generators is growing quieter as fewer people can afford them. Hence, the reliable backup for power outages is becoming a luxury, leaving both sellers and buyers in a difficult situation, uncertain about the future.

“We don’t see customers the way we used to”, said M.D. Emeka, a generator seller. “You might think it’s due to an improvement in power supply, but that’s not the case”.

Pointing to an Elepaq generator with a tire wheel beneath it, he added, “this 11kV sold for around N450, 000 six months ago. Now, it’s N700, 000.” His words re-echoed the lamentation of many in the industry. When asked which generator would power a small business with two deep freezers and other appliances, Festus, another dealer pointed to an 11kV model.

He suggested that an 8kV Sumec generator, priced at N630,000 could also do the job. “This one will handle a deep freezer and a fridge. It can even run an AC, as long as there aren’t other heavy appliances,” Festus explained.

However, he noted that people are less interested in big generators due to the escalating prices.  “Fuel is expensive, and a generator we used to sell for N300,000 is now N630,000,” he added, still pointing to the 8kV Sumec generator.  Similar trends were observed in other markets. On average, it was observed that the following prices were charged for models, such as an 11kV generator, now sold at between N700,00 and N750,000 (depending on market location and model), 8kV generator was sold at N610,000 to N650,000,   3.3kV generators sold at N450,000 to N400,000, 2.8kV generators at N350,000 to N390,000.

There was no alternative for small business owners. In Nigeria, where the national power supply is notoriously unreliable, small businesses rely heavily on generators like the 11kV and 8kV models to keep their operations running. Despite government’s efforts to boost power generation, the country still produces only 4,500MW for over 200 million people.  This limited supply means that businesses needing constant electricity must often find their own solutions.

Alice Okoye, a middle-aged woman who runs a cyber cafe that serves students, professionals, and anyone in need of Internet access, said she struggles with erratic power supply. “We get less than 12 hours of electricity a day, mostly in the middle of the night,” she explained, frustration evident in her voice.

“They say we’re in Band B, but it feels like we’re forgotten. They give us light mostly at night, then there is no light during the day, only to return it in the evening,” Alice lamented. “That means we don’t get to see light during business hours.”

Her cyber cafe depends on two big generators, both of which are nearly worn out due to over-use. With prices rising, Alice has lost hope of buying a new generator.  “How can I afford a generator costing over half a million when my business doesn’t rake in that much even in six months?”

Alice’s experience is shared by many others. Barbers, welders, boutique owners and small lounge operators across Nigeria face similar challenges. Christopher Orsu, a barber, said he has become adept at maintaining his generator. “People don’t wait for you if you don’t provide electricity; they move on to the next shop,” he said. Orsu said he prays every day his generator does not run out of steam, “It means I will have to pack up or borrow money to keep my shop open. Generators are gold now”.

Nigeria’s electricity sector continues to battle low power supply, leaving households and businesses to depend on alternative sources like generators and solar panels.

The Minister of Power announced plans to ramp up power generation on the grid to 6,000MW. However, this may not fully address the underlying issues. Energy analyst, Ayodele Oni remarked that “Nigeria will still have to depend on generators for a long time since 6,000MW is not sufficient to meet the demand, at least for another ten years.”

According to Oni, the planned increase in power generation will not be enough to address the nation’s chronic energy deficit. Many regions will continue to rely on generators as a primary power source, as the grid’s capacity remains far below the country’s needs.  Lagos-based energy consultant, Moses Owolabi highlighted the situation, noting, “While generators contribute to significant carbon emissions, they remain a reliable alternative for consumers. In many cases, they are more dependable than solar energy, which can be inconsistent due to weather conditions.”

Owolabi explained that despite the environmental concerns, generators offer a more consistent and immediate solution for power supply compared to solar energy, which is often hindered by inadequate infrastructure and variable sunlight.

Investigations also revealed that given the high prices of generators, many dealers may close shop, leaving businesses in ruins and many communities in blackout.

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