Generators, once a symbol of extra comfort for households and small businesses in Lagos, have transformed into essential commodities beyond the reach of many due to a drastic surge in prices.
The iconic “I better pass my neighbour” generators, renowned for powering the homes of the less affluent, now signify a luxury status, with prices soaring to N140,000, a 40 percent increase from February 2023.
Blessing Abeti, a salon owner in Ikeja, expressed shock at the exorbitant cost, stating, “N140,000! I nearly fainted.”
She emphasized how generators, once a sign of modest comfort, have become indispensable for survival amid erratic power cuts.
Funsho Abiodun, a generator dealer, highlighted the dire situation, noting that despite the staggering prices, people are compelled to purchase generators due to the absence of viable alternatives.
Hakeem Aliyu, a barber and retailer, lamented the luxury of replacing his aged generator, purchased in 2015, due to the inflated prices. “I am still managing the small generator I bought in 2015 because the price of the same generator in the market is too much,” he said.
The latest Nigeria SME Survey by PricewaterhouseCoopers underscores the significance of electricity expenses as the primary operational cost for small businesses, further exacerbating the impact of skyrocketing generator prices.
Market analysis reveals that compact petrol generators now exceed the N100,000 mark, with certain models retailing for as high as N145,000 on online platforms like Jumia.
According to the Access to Energy Institute (A2EI), the small generator market is projected to experience steady annual growth of three percent until 2030, driven by population growth and rising incomes. An anticipated surge in demand underscores the critical role generators play in Nigeria’s energy landscape.
IRENA’s report on Nigeria’s renewable energy roadmap underscores the country’s heavy reliance on self-generated power, with urban households and businesses resorting to diesel and petrol generators amid persistent power shortages.
With Nigeria leading Africa as the highest importer of generators, the escalating prices of captive generation pose significant challenges to both households and businesses, exacerbating the economic burden in a nation already grappling with power deficits.