Nigeria Power EPC Market Size (2024 - 2029)

Nigeria Power EPC Market Size Summary

The Nigerian power EPC market is poised for growth, driven by supportive government policies and increased investments in the power sector. Despite the challenges posed by geopolitical tensions, high fiscal deficits, and inflation, the market is expected to recover to pre-pandemic levels. The country's power sector, however, lags behind its peers, with a significant portion of the population lacking access to grid-connected electricity. Thermal energy, primarily fueled by natural gas, remains a dominant source of electricity generation due to its efficiency and cost-effectiveness. The government's focus on expanding thermal energy capacity is expected to continue, supported by the country's substantial gas potential. This strategic emphasis on thermal energy is further bolstered by the commissioning of new gas-fired power plants, such as the one in Maiduguri, to meet the growing electricity demand driven by the increasing population.

In addition to thermal energy, Nigeria's power EPC market is witnessing a growing interest in solar energy, particularly in the northern and northeastern regions, which benefit from high solar radiation. The potential for decentralized solar assets is significant, given the low connectivity and harsh conditions in these areas. The installation of solar energy capacity has been on the rise, with projects like those undertaken by Rensource Energy highlighting the demand for sustainable and affordable electricity solutions. The market is moderately consolidated, with key players such as Gentec EPC Ltd, Andritz AG, and Energo Nigeria Ltd actively participating. Recent investments and projects, including those by GE Gas Power and the Nigerian government, underscore the ongoing efforts to enhance the country's power infrastructure, with a focus on both thermal and renewable energy sources.