The sale of petrol generator sets in Nigeria has significantly decreased after President Bola Tinubu’s pronouncement on May 29 putting an end to fuel subsidies.
According to Nairametrics, sales for all generator dealers fell significantly over the past month, with the majority of them unable to sell more than half of their regular stock.
Market participants have expressed alarm due to the clear connection between this unexpected sales decline and the recent rise in fuel prices.
This change is the result of the fact that many Nigerians are finding it harder and harder to pay the escalating cost of petrol. Instead, they are using alternatives to power their homes, such as solar panels.
The demand for generators has decreased as a result of several locations in Lagos and eastern Nigeria reporting improved power availability over the past two months.
At the Lagos Trade Fair, Samuel Chikeleze, a key generator importer, reported a sharp decline in business.
He claimed has had trouble selling even one generator in the past month. “Lagos buyers appear to be less keen in buying,” according to Chikeleze.
He pointed out that while business had previously been booming, it has drastically decreased in recent weeks as a result of the high price of fuel. He continued by saying that many Nigerians are unable to afford fuel, which reduces the amount of time they use their generators.
He admitted that his wife no longer prepares meals for the week since the family can no longer withstand the danger of losing a pot of soup in the case of a week-long power outage because he can no longer afford the cost of powering his generator.
Numerous fueling station owners claim that a sharp decline in the number of people coming to purchase fuel in jerry cans confirms the trend.
A generator repairman in Igando, Lagos, named Chinagorom Okoye had a similar story.
He stated that recent weeks have been difficult for business, particularly with the rise in fuel prices. He claimed that in these times, he barely has enough money to feed his family.
According to the managing director of Data Analytics and Solutions Nigeria Limited, Brian Amonu, A rise in poverty could result if the current tendency keeps up.
A significant decrease in generator use could endanger the careers of many repairers because it is anticipated that 20 million generator sets require maintenance from time to time.
The government and stakeholders may need to address the potential economic repercussions as Nigeria deals with the effects of the elimination of fuel subsidies and investigate ways to lessen the burden on people and companies that depend on generators for power.
