Opportunities in the energy transition

Nigeria

Okechi Igwebuike, managing director of Cummins West Africa, talks to The Energy Year about new opportunities in the market related to Nigeria’s energy transition and the company’s diversification strategy. Cummins West Africa supplies gas- and diesel-fuelled power generators and other engines in Nigeria for industrial purposes.

Can you give us an overview of the company’s operational assets?
Our Cummins Ikeja facility is designed to synergise all our operations, providing a blend of structural, service and training capabilities to serve the needs of our customers. Our goal was to create a one-stop shop where our current and prospective customers could access technical and operational support with ease. We have invested in building and maintaining our fully equipped modern facility with a climate-controlled workshop fitted with a dynamometer for the testing, rebuilding and repairing of diesel and gas engines.
We have an automated assembly plant, a coolant plant with a production capacity of 5,000 litres per hour, a pre-delivery inspection test area, a warehouse for parts and low kVA generators, a bespoke training facility and, most importantly, world-class offices that promote creativity and team collaboration. Bearing in mind the critical role we play in the value chain, we also extend our best-in-class blended training to the service and maintenance teams of our respective customers.

How does Cummins Nigeria compare with other similar entities in the market?
Cummins West Africa is a subsidiary of Cummins Inc. in Nigeria; a 103-year-old power solution company with a rich history of innovation and technology development globally. We pride ourselves in being always trusted, always innovating, always customer-driven and always responsible. This is embedded in our Cummins culture globally. Our products are designed and manufactured in-house, leveraging our cutting-edge technology, quality, operations, service and technical capabilities.
Despite the global supply chain challenges affecting businesses, we remain committed to sustaining our growth by understanding and anticipating our customer’s operational needs through demand forecasting and inventory management. Building customer partnerships to understand market fluctuations and the macro-economy has been integral to our ability to serve the Nigerian market, especially in the marine sector, where downtime for vessels can become very expensive.

What segments is the company looking at to diversify its focus and offerings?
Nigeria’s ambition is to soon have an operational power generation capacity of 40 GW. Without a proper power generation system, industrialisation is difficult to develop. As a diesel and gas engine manufacturer, we foresee that demand for power generation will rise in the future. We service the industrialisation efforts in Nigeria, whether it is in the automotive, maritime, manufacturing, agricultural or real estate sectors.
Our operational strategy focuses on leveraging growth opportunities. Therefore, as the Nigerian market grows, we will continue to position our brand as a one-stop shop for gas and diesel power solutions, while adhering to our 2050 net-zero-emissions strategy.

What opportunities for growth do you foresee in Nigeria’s power generation sector?
The Nigerian market remains dynamic and fluid, with a growth trajectory that adds significant value to the Cummins Africa-Middle East business and will continue to do so in the future, creating more business and employment opportunities. Cummins is committed to making people’s lives better by powering a more prosperous world. We are continuing to advance technology and power solutions that are essential to our future. We understand that strong communities and businesses depend on a healthier planet, and as a key player in the industry, we are committed to being part of the solution for clean energy.
Although there are many challenges the market needs to overcome in this sector, such as building a more robust transmission and distribution network, we are well-positioned for growth, especially in modular solutions.

How would you assess the environment for green and alternative energies in Nigeria?
“Destination Zero” is our strategy to achieve zero emissions by reducing greenhouse gas emissions and supporting the transition to decarbonised power. Our strategy is rooted in our mission of making people’s lives better by powering a more prosperous world, one where we create prosperity for all stakeholders in a sustainable way.
Being part of Cummins Inc., we look forward to implementing alternative and clean energy in Nigeria, and we anticipate that the market environment will respond positively to the groundbreaking changes over time.

Read our latest insights on:

• Nigeria