The Nigeria diesel genset market value stood at $445.1 million in 2021, and it is expected to exhibit a CAGR of 6.8% from 2021 to 2030 (forecast period). According to the estimates of the market research organization, P&S Intelligence, the market will reach a value of $806.8 million by 2030. The market is being driven by the soaring requirement for power in various industries, growing power transmission losses, and substantial base power deficit in the country.
The power infrastructure in Nigeria is considerably weak, on account of the existence of huge power transmission losses and high-value base power deficit in the country. Moreover, the country is witnessing a sharp surge in the demand for diesel gensets, owing to the rising urbanization rate and rapid economic progress. As per an article published in the International Trade Administration, the Nigerian government is making huge investments for boosting power production through small, medium, and large hydrostatic power plants with a total capacity of 6,024 MW in several cities, such as Kashimbila (40 MW), Makurdi (1,000 MW), and Mambila (3,050 MW).
Furthermore, the increasing construction and oil and gas exploration and production activities are further boosting the need for diesel gensets in the country. Oil and gas fields are usually located in various remote locations and thus, the lack of proper grid connectivity is pushing up the demand for diesel gensets in the country. Depending on application, the Nigerian diesel genset market is classified into residential, industrial, and commercial. Out of these, the commercial category is holding the largest share in the market.
The Nigerian diesel genset market is currently witnessing the trend of decreasing imports of low-power diesel gensets. As per the UN Comtrade, the import value of gensets in the country has been plunging since 2015. The enactment of government regulations and policies aimed at mitigating the import of low-power gensets is one of the major factors fueling this trend. Furthermore, large, medium, and small gensets produce 699 g/kWh, 883 g/kWh, and 1,580 g/kWh of CO2 in the atmosphere, respectively. These low-power gensets are majorly used in hostels, small commercial facilities, such as salons, small offices, and restaurants, and houses.
Hence, it can be safely said that the demand for diesel gensets will soar in Nigeria in the coming years, primarily because of the presence of a poor power grid infrastructure, huge power transmission losses, and increasing construction and commercial activities in the country.
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