Sakr Power Generation to Offer Renewable Energy Solutions in Nigeria

Interview with Sleiman Asmar, MD of Sakr Power Generation (Nigeria)

Let’s start with an overview of the sector that you are involved with, power generation. Specifically we want to inquire about the situation with the diesel supply and how it is affecting your business?

Actually we are looking forward to switching to renewable energy like gas. We don’t have a large problem supplying diesel but we must start thinking about switching to renewable energy for the benefit of the environment. We have to start thinking green. We are one of the companies that can find these solutions. Most of our projects now are powered by gas. We also have some renewable energy projects using oil but they aren’t in Nigeria they are in India because our sister company in Germany called MBH is specialised in manufacturing using vegetable oil. I tried some time ago to introduce it to the Nigerian market but I didn’t succeed because it was too new but I still want to take it to the government, perhaps the Minister of Power, because Nigeria is a big country and a vast country in terms of agriculture. The oil actually comes from a fruit called jatropha, and it makes renewable green energy.

Regarding diesel, we don’t have much of a problem with it but I don’t think we should keep relying on diesel.

Tell us more about Sakr Power Generation in Nigeria. How long have you been in the market?

First of all let me say that Sakr is a holding group; our head office is in Lebanon but we are present in more than 13 countries worldwide. We have been in Nigeria for the past 18 years. We have been established here with our facilities in Ibafo on the Ibadan Express Way. Our head office is in Ikeja. We supply generators for 10 to 5,000 KVA. We also do projects. We do gas projects and diesel projects because some places don’t have a gas supply so they must use diesel. There is a new technology now called CNG where you can compress the gas and put it in cylinders so that even in an area where there is no gas you can install a gas generator and store the gas in tankers. However our view for the future here in Nigeria is to stop supplying small size generators and to focus on projects. This is our future view because it is too difficult to handle, service and go around the country supplying generators.

Furthermore we have to start thinking about reducing the amount of pollution in the air by creating projects. For example if you do a project in Victoria Island, you can supply power for the whole of Victoria Island. You can then do one in Lekki and another one in Ikeja. The Nigerians really have to think seriously about projects. They have started in some areas but it is still not moving fast enough.

The situation is tough but I still think now is the time for foreign investors to come because they can establish themselves here now and when it picks up they are here and ready.

For your ongoing projects at the moment, are you looking for any certain partnerships or do you do everything in house?

We do everything in house but we don’t manufacture the generators, we have partners. We also have MBH that I mentioned earlier, which is in fact part of our group. It was acquired by Sakr Holding in 2007/8. That company manufactures generators from scratch. We still partner with other companies like Perkins and Cummins. We are also perhaps signing soon with another company but for now it is still confidential. We have partners. Here in Nigeria we assemble generators, we don’t manufacture them. We bring the CKD generators in and assemble them. We can assemble from 10 KVA to 2,000 KVA here in our facilities at Ibafo.

On the holding level, is Sakr Power Generation the only subsidiary in the country?

We have Sakr Lighting and we are studying the market here for it. I don’t know yet but lighting is a very good business in Nigeria. It includes fittings, lightings, LEDs etc. We are researching and studying the market. We might go for it if we see that it is profitable.

Is there any particular project you would like to talk about?

We are about to sign on a project with the Kaduna government to install a project of 20 megawatts. If we agree on the contract we shall move forward and begin to supply the material. We are working on a big project in Lekki for an estate of 600 houses. As I said, our future goal is to only work on projects and stop supplying small generators. We want to be green and educate Nigerians that we have to stop having one or two generators in each house. It is an ecological disaster we must stop and we must move towards projects instead.

Have you been here since the inception of Sakr Power Generation in Nigeria?

I have been in Nigeria since 1990 but I have been with Sakr since 2008. I had my own business all of those years and then I was offered a job with Sakr and I accepted.

What would be your message to international investors?

Come to Nigeria because it is now the land of opportunities! It used to be America and now it is Nigeria! I am not joking. We have a tough situation now with the price of oil being down, so we may suffer until the end of the year but it will pick up and I am telling you that this is the land of opportunities. It is very easy to work here. People are cooperating; there are no problems especially with the new president who is putting everything in order. I want everyone to come to Nigeria. We are talking about a population of 220 million. There is money here. There is not only oil here, there are many other things. Companies that are interested in agriculture have huge opportunities here; the future of Nigeria is agriculture. There are vast amounts of land. Agriculture, construction and power are the future of Nigeria.

What differentiates Sakr Power Generation from the competition?

The secret of our business is quality and aftersales. We have good quality generators and we have good quality aftersales. That is the most important thing because you buy a generator once but the relationship you have with your client goes on forever until the generator is damaged. Quality and aftersales are the core differentials that put us ahead of our competitors.

What is the level of cooperation between Sakr Power Generation and the government?

We are waiting for this because we cannot import at the moment because you cannot open a LC. There is no Naira now. The situation is tough but I still think now is the time for foreign investors to come because they can establish themselves here now and when it picks up they are here and ready. Everyone will say that the situation is tough and there are companies that are closing down, but any company that can resist this situation will grow afterwards and they will be compensated. You have to survive this tough period. New investors should start coming now, not wait until the situation has improved. You need 6 to 8 months to register the company and get to know the country so by then I am sure the country will have picked up.

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