Nigerians spend an estimated N3.5 trillion yearly on fueling generators to meet commercial and domestic needs , as grid power is seriously inadequate. A report from GIZ, a German-based firm, said generators provide alternative source of energy and further improves economic activities for the country.
The firm, which specialises in offering solutions to countries in solar and other forms of renewable energies, in a report, made available to The Nation, said Nigeria was one of the major importers of generating sets in Africa, noting that the country has spent huge amounts of money on buying, using and servicing generators.
It said Nigeria has been spending between N3trillion and N3.5trillion yearly on fueling generators in the past three years, adding that the country mostly imports generators from Asian countries such as China, Japan and others.
The firm said it was working on a study that would capture the expenditure incurred on importation and maintenance of generators in Nigeria and other African countries for 2016, adding that generators consume huge volumes of fuel after automobiles in Nigeria because power supply is not regular.
It said Perkins and other brands were used by manufacturers because they help in sustaining production activities.
The President, Renewable Energy Association of Nigeria (REAN), Mr. Segun Adaju, said the N800billion given by the Nigerian Bureau of Statistics (NBS) as the expenditure on fueling generators in a year was small when one considers the fact that the country was running what he described as a ‘generating economy.’
He said virtually every home and office uses generators, adding that the cost of fueling them run into billions of Naira daily. According to him, firms, especially manufacturers, spend billions of Naira weekly to procure fuel for generators. He added that they use high-powered generators that consume more fuel.
Adaju said: “Though the German firm didn’t provide insight into how it arrived at N3.5trillion yearly spend on fueling generators in Nigeria, its findings are not far from truth given the fact that Nigerians use generators a lot.
“Millions of people use the smallest size of generators popularly called I better pass my neighbour. The cost of fueling this brand runs into millions in a day let alone heavy brands such as Perkins that consume drums of diesel in day. Companies that use Perkins and other brands spend on average between N30million to N40million a day.”
According to him, the study conducted on the use of generators in Nigeria by his association showed that individuals and companies spend billions of Naira on generators monthly.
Adaju, who is also the Chief Executive Officer of Consistent Energy Limited, urged Nigerians to explore opportunities in solar and other renewable energies to save money. The need to save money informed the decision of his association to create awareness on the use of solar, wind, coal and biomass forms of energy, he added.