Nigeria’s leading distributor of industrial and household power generators, Mikano International has linked up with French-based electricity solutions conglomerate, Schneider Electric, following an agreement that will see the local distributor manage the sales of low voltage electrical equipment.
The low voltage equipment which includes: transformers, circuit breakers (medium voltage), and distribution boards, would stretch Mikano’s product portfolio, which was formerly dominated by power generators, and deepen its reach within the local energy industry in Nigeria, a BusinessDay report highlighted.
“These products will be added to the already existing quality products distributed by Mikano, who will ensure availability of Schneider Electric products across the country,” said Christian Farine, MD of Mikano International.
On the part of Schneider, the deal should further boost its presence in the Nigerian power industry, particularly in the period of a rapidly growing private participation in Africa’s largest economy, following the privatization of the country’s power assets in November last year.
Tussle in electricity delivery?
Following the completion of the privatization process, an influx of local and international operators has been witnessed, with all keen to maximize opportunity to consolidate a healthy position as the leading power company.
Since November 2013, investment in rehabilitating power infrastructure has been aplenty; American-based General Electric (GE) has championed the push for increased investment, having signed several investment deals with stakeholders. It has already committed $1 billion to building local capacity and developing infrastructure, with $250 million to be poured into a power asset assembly plant in Calabar.
Canada’s SkyPower has also indicated interest in investing $5 billion in developing a 3000MW renewable energy facility, while Azura Power Holdings recently secured $750 million – brokered by Standard Chartered – for a 450MW plant in Edo State, Southern Nigeria.
Mikano’s agreement with Schneider will not only help diversify its business portfolio, but set a solid base to push long term operations, as Nigeria, and Africa as whole, takes baby steps towards a ending uninterrupted electricity delivery within the continent.