How To Start A Generator Repair Business In Nigeria: The Complete Guide

How To Start Generator Repair Business in Nigeria or Africa: Guide
How To Start A Lucrative Generator Repair Business In Nigeria Or Africa: The Complete Guide | Image: Gumtree


Electricity is an essential part of our daily life. Due to a lack of grid infrastructure and power requirements in remote locations, diesel generators have become widely used in many areas where electrical power is unreliable or non-existent. Generators complement the main power supply or serve the main power supply and an emergency backup for hospitals, commercial buildings, and manufacturing units and in several applications.

The global generator market size stood at US$ 19.15 Bn in 2018 and is projected to reach approximately US$ 29.9 Bn by the end of 2026, exhibiting a CAGR of 5.79% in the forecast period. The global portable generator market is expected to grow at a CAGR of 6.6% to reach almost US$5 billion by 2022. The diesel generator market is driven by the increasing rise in demand for continuous and stable power supply and rapid industrialisation and urbanisation in the developing economies.
In the U.S., over 80% of power transmission lines and transformers are more than 28 decades old, highlighting creaking infrastructure as the biggest threat to stable and reliable energy supply – and this can be reported to be the same with other developing countries like Nigeria. The United States and Europe represent large markets worldwide, with a combined share of 48.1% of the market. China ranks as the fastest growing market with a CAGR of 6.1% over the analysis period.

The situation is not any different in Nigeria. Nigerians spend an average of $14 billion on generators and fuel yearly to keep their businesses from crippling. This suggests an increase in spending and proves that Nigeria’s power supply is not getting better despite the privatisation. To improve the power sector, Nigeria resolved to privatise, which led to the creation of 11 distribution companies, but nothing has changed as there is still a shortage of power supply. This would only indicate that more businesses and individuals will spend heavily on generators in the future.

Data on Import/Export Trade from United Nations Statistics Division shows Nigeria is the second-largest market for a generator is driven economy in Africa. According to the report, generator manufacturers and distributors took advantage of the inadequate electricity supply and demand gap in Nigeria to import 75-375 KVA diesel generating sets valued at over US$51 million (about N10 billion) to power the country’s factories, telecommunication towers, homes and offices between 2014 and 2015. A recent investigation shows that Nigeria has been the leading importer for the last 13 years since 2007.

Since most Nigerians rely on generators, preventative maintenance is essential to ensure the generator sets’ long lifespan. The number one cause of generator failure is the lack of planned maintenance. A portable generator’s lifespan can be reduced if exposed to a lot of moisture or dust, so it’s essential to make sure it is properly stored and maintained.

This is where a generator repair business comes in. Since the importation of generators continues to increase, there will always be a rise in the demand for repair specialists. There are a lot of opportunities for those who want to learn the skill of repairing generators.

So, if you plan to start a generator repair business in Nigeria or any other part of Africa, here is a step-by-step guide to help you.

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What Is An Electric Generator?

Electrical generators are standalone machines that provide electricity when power from the local grid is unavailable. Some electrical generators are small, portable devices used for camping or hobbies to offer small amounts of energy for just a few devices. Others are permanent installations that can power an entire house. Industrial generators are even more powerful, capable of maintaining full power to manufacturing facilities, hospitals, and office complexes.

Generators don’t create electricity per se. Instead, they convert mechanical or chemical energy into electrical energy. They do this by capturing the power of motion and turning it into electrical energy. A generator is essentially an electric motor working in reverse.


What Is A Generator Repair Business?

In simple terms, a generator business will provide maintenance and repair services to generator owners. Generators are not reliable – they break down incessantly. Therefore, people who are specialists in repairing generator sets will make a fortune off the situation.

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Business Opportunities In A Generator Repair Business In Nigeria And Around The World

1). Gas Generator Operation Services:

Gas generator operators inspect and conduct checks on generator sets and associated installations daily.

2). Generator Technician Services:

Generator technicians provide repair and maintenance services of all makes and models of generator sets.

3). Sales Executive:

A salesperson sells and purchases generator spare parts and keeps records of goods and financial transactions.

4). Field Service Generator Engineers:

They are responsible for repairs, fault finding, servicing, diagnostics, and overall maintenance of generators.

5). Apprenticeship:

An added business opportunity in generator repair is that you could also make money by training young apprentices.


Facts And Benefits Of Electrical Generators

  • All the electronics in your home will still operate during a power outage.
  • Since you can always turn on the air conditioner even with your generator, you and your family will be protected from additional pollen, dust, and dirt when there is a power outage.
  • Whole-home generators start automatically when your power shuts off, so you won’t have to worry if there’s a severe storm near your home when you’re on vacation.
  • Generators prevent food waste
  • Electricity during power blackouts
  • Provides backup during natural disasters and other emergencies
  • They sustain farms during natural disasters and can be used in the daily activities around the farm and the garden.
  • They offer emergency power for appliances during a power outage
  • They prevent damage during a power outage
  • The US, Europe and China have the largest markets for generator repairs.
  • Generators are safe and easy to use
  • Rugged and dependable
  • Generators are easy to use even for outdoor activities

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Types Of Generators

Generators are differentiated based on their applications. The various types of generators based on the application include portable generators, inverter generators, standby generators, industrial generators, and induction generators. There are also two fundamental types of generators known as A.C. (alternating current) and D.C. (direct current) generators.

1). Portable generators:

They are instrumental in a variety of applications. They are handy during natural disasters or emergencies and provide power during planned or unscheduled power outages. They are more suitable for residential purposes and smaller commercial establishments such as retail outlets and shops.

2). Inverter Generators:

Inverter generators produce A.C. power by using a rectifier that converts the A.C. power into D.C. power and then inverts it to A.C. to provide steady current to appliances. These are very useful for devices such as air-conditioners, refrigerators, etc. They are also lightweight and compact.

2). Standby Generators:

Standby generators serve as backup during a power outage. They automatically come on when grid power fails. These are very useful for residential apartments, hotels, restaurants, hospitals, and commercial establishments connected to grid power.

3). Industrial Generators:

Industrial generators or large commercial generators need to be more robust and rugged and perform under harsh conditions.

4). Induction Generators:

There are two types – externally excited generators and self-excited generators. Externally excited generators are used in regenerative braking applications needed in hoists, cranes, elevators, and electric locomotives. Self-excited generators are used in windmills where wind energy is converted into electric power.


How To Start A Generator Repair Business in Nigeria: A Step-By-Step Guide

1). Conduct Your Market Research:

The first step to starting any business is to conduct market research. This will help you determine whether that venture has a market for the service or product you are offering.

2). Acquire The Technical Skills Required:

This is an obvious step. To start your own generator repair business, you should have all related technical skills. This could take quite a lengthy period. However, you could start up the business and employ expert repairers to work for you.

3). Write Your Business Plan:

Once you have done your market survey, and generator repair services are certainly needed in your area, and you have acquired the required skills, the next step is to write your business plan.

4). Register Your Business And Open A Corporate Account:

It is essential to register your business with the Corporate Affairs Commission, obtain your Tax Payer’s I.D. and then open a corporate account for your business with any bank of your choice.

6). Purchase the Required Working Tools:

To start this business, you need to purchase the tools that are necessary for generator repairs. Order a complete generator repair kit.

7). Rent A Workshop:

Although you might be fixing your clients’ generators at their homes, it is still essential to have a workshop where you will operate from. The truth is that some people still prefer to bring their generator sets to your workshop to get it fixed. So ensure that you rent a spacious and secure facility for your generator repair workshop.

8). Source for Generator Repair Jobs:

You can source for repair jobs by dropping your business card with generator owners or inform those that sell generators to refer clients to you. It will even be more profitable if you can partner with generator dealers to help their customers install their generators and help them with maintenance.

Starting a generator repair service is a profitable business, but you can maximise your profit by selling generator spare parts as part of the company. It is the wise thing to do because it will save you cash, time, and energy when you need to buy parts to help someone fix their generator. It will also help you maintain a steady income flow when you don’t have repair jobs to handle.

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Challenges of A Generator Repair Business In Nigeria

  • Absence of startup loans for investors and generator repairers.
  • High startup capital
  • Location problems
  • Difficulty in earning the trust of generator owners.
  • Maintaining a reputation
  • Difficulty in getting quality generator spare parts
  • High competition, especially in major towns and cities.

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To Sum It Up

Generators are growing in demand since they are efficient, cost-effective, and reliable. The wider the acceptance of generators, the stronger the need for generator repair services. The generator repair business in Nigeria can be a lucrative and profitable venture to start-up, due to its vast market demand and on your ability to build a wide network. If you’re looking for a lucrative business to venture into, the generator repair business in Nigeria is a great option to explore.


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What are your thoughts on how to start a generator repair business in Nigeria? Let me know by leaving a comment below.

Stan Edom
Stan Edom
I'm an entrepreneur with expertise in supply chain management, international trade, small business development, e-commerce, internet startups, renewable energy, and agriculture. I'm also a network engineer, I.T security expert, and computer programmer. In my spare time when I'm not working out at the gym, I try to solve problems people face in their everyday lives with whatever means necessary.

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