The Nigeria power EPC market is witnessing significant growth with CAGR greater than 7.5%. Factors such as huge investment and government policies are likely to drive the Nigerian power EPC market during the forecast period. The Nigerian power sector is dominated by thermal power generation, that too gas-fired, accounting for over 80% of the total power generation in the country. The transmission losses in Nigeria, across the network, are high at an average of approximately 8%-10%, compared to the emerging countries’ benchmarks of 2%-6%. This, in turn, the Nigerian government is approaching foreign investment for power plant infrastructure to full fill the demand of the country. Which is expected to propel the Nigerian power market during the forecast period. However, geopolitical tensions and the high fiscal deficit with a high inflation rate are expected to negatively impact the Nigerian power EPC market in the short term.
- Renewable energy is expected to dominate the Nigerian power EPC Market.
- Getting off-grid solutions to scale and commercial viability in Nigeria is expected to unlock an enormous market opportunity in sub-Saharan Africa across 350 million people in countries with smaller demand and less-robust economies. Which likely to support the Nigerian power EPC market in the coming future.
- Rapid rise in domestic demand led to increased electricity generation targets, which are likely to drive the Nigerian power EPC market during the forecast period.
Key Market Trends
Renewable energy to Dominate the Market
- The Nigerian power sector is dominated by thermal power generation (gas-fueled), accounting for about 80% of the total power generation in the country. However, the thermal industry is witnessing a slow growth, due to the inadequate infrastructure and disruptions in regular gas supply. Thus, the Nigerian government is focusing on renewable energy for electricity demand as the country has an abundance of various renewable energy resources, particularly solar, wind, biomass, and small hydropower (SHP).
- As of 2018, Nigeria’s solar photovoltaic (PV) installed capacity reached 19.085 MW, representing an increase of 26%, compared to the solar PV installed capacity in 2015. The Renewable Energy Master Plan was launched in 2011 to increase the share of renewable energy in the country by 10% by 2025, compared to 2%, in 2018.
- As of 2019, there were about 1436 MW of renewable power plants under construction, including the small hydropower plants. Solar power accounts for about 94% of the upcoming renewable power plants’ capacity.
- Furthermore, the country is expected to receive investment worth USD 165 million from the European Union (EU) for the country’s Renewable Energy Master Plan. This factor is expected to boost the development of several renewable energy projects in the coming years.
- Hence, upcoming projects, investments, and policies for renewable energy are expected to be the biggest and the most dominating driver for the Nigerian power EPC market during the forecast period.
Rapid Rise in Domestic Demand Likely to Drive the Market
- Nigeria is the largest economy in the African continent, with a GDP of USD 398,186 billion in 2018. However, its power sector is registering a lower growth rate, compared to the growth rate of its peer countries. About 40% of its population has no access to grid-connected electricity and those connected to the grid face extensive power outages.
- The country’s transmission infrastructure is grossly inadequate and is a key factor responsible for stranded generation capacity, a characteristic of the country’s electricity grid while demand is too high.
- The demand is driven by the growing population, high demand during summer, expanding industrial sector led by development in the petrochemical sector.
- Thus Nigerian government approved a loan amount of NGN 701 billion, demanded by the Nigerian Bulk Electricity Trading PLC (NBET) from the Central Bank of Nigeria (CBN) for expansion of old power plant. Moreover, the new 450 MW Azura-Edo power plant started production to increase the country’s generation capacity.
- Furthermore, the Ministry of Power, Works, and Housing had announced that the Rural Electrification Agency (REA), which has completed the guidelines for the operation of the Rural Electrification Fund (REF), where rural power developers would get from NGN 3.5 million to NGN 106 million to improve rural electricity. In addition, the private rural power developers, NGOs, and communities are likely to get a capital subsidy from NGN 3.5 million (about USD 10,000) to NGN 106 million (USD 300,000) to cover 75% of the project cost.
- Hence, as demand is rising, the country needs more power plants which is expected to increase in the epc services in power sector owing to government policies and foreign investment. This in turn, Nigeria power epc market is likely to propel during the forecast period.
The Nigeria power EPC market is moderately fragmented due to many companies operating in the industry. The key players in this market include Nigerian Gas Company Limited, Nigeria Electricity Bulk Trading PLC, Afam Power Plc, Abuja Electricity Distribution Company PLC, JuNeng Nig Ltd, and others.
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1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, until 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by the Leading Players
6.3 Company Profiles
6.3.1 Nigerian Gas Company Limited
6.3.2 Nigeria Electricity Bulk Trading PLC
6.3.3 Afam Power Plc
6.3.4 Abuja Electricity Distribution Company PLC
6.3.5 JuNeng Nig Ltd
6.3.6 Gentec Epc Ltd.
6.3.7 Middle Band Solar One Limited
6.3.8 Alten EnergĂas Renovables
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.