Pukkah:

I think you should include the source or how the numbers were arrived at.

You may also indicate the start-up cost for each one under different scenarios. Eg, the start-up cost for PHCN is the metre. What's the start-up cost for solar and comparable diesel generators?

Petrol/diesel generators come in different capacities. Does this change the cost per kWH?

Can Solar power support the appliances that PHCN or diesel generators easily support, eg ACs, fridges, electric irons, etc?

The source for my numbers are as follows:

1. Average petrol and diesel consumption rates at the current official fuel prices are readily available via any google search. A recent report at the start of 2012 done PRIOR to the partial subsidy removal had the figures of 46.3 per kWh and 47.78 kWh for petrol and diesel generators respectively. This has subsequently risen by 50% as you will be well aware.

2. PHCN costs per kWh figures, again, are widely available through any google search.

3. Solynta Energy, a UK based company about to launch into the Nigerian domestic and commercial markets, are providing complete solar solutions at a comparable price of 15.5 naira per kWh. Here is how that number is calculated.

A 1kW PV solar power system (including installation) sells for N800,000, and produces 57,000 kWh of electricity over 25 years. The total cost of that system, including replacement costs of Inverters every 10 years, and batteries every 5 years, is N883,776. So, simply divide the cost by the number of kWh produced, and you get a cost per kWh of 15.5.

This is irrefutable fact.

Please note that these numbers assume ZERO start up cost for both generators and PHCN. Including those costs will increase the cost per kWh as you can appreciate. Solar on the other hand, is totally an upfront cost. Once incurred, there are practically zero maintenance and replacement costs over at least 25 years.

The average generator costs per kWh are generally higher the smaller the generator is. The numbers used are an average number based on generators between 1 kva and 100 kva. So, the average for household generators is likely to be about 10-15% higher than quoted.

Solar Power can support anything from a single room, right up to the largest factory installation. There is no limit to the amount of Energy Solar panels can produce, because there is no limit to the amount of energy the sun can produce (its the most powerful energy source on earth by some order of magnitude). The only constraint is the amount of roof space your house has to lay the panels on. The average home has sufficient roof space to generate 4 times the amount of energy it requires.

It seems Nigeria is in the wilderness in terms of Solar knowledge, whilst the rest of the world takes it up with massive gusto. We are very backwards it seems.

http://www.solarcity.com/
http://www.smh.com.au/environment/energy-smart/australians-lead-in-fitting-solar-panels-on-homes-20120817-24dxd.html

Just a little snippet of information for you. Nigerians please wake up.

ayox2003:

First off, a segmented class exist in Nigeria: the poor (more than 50%), the middle class, and the rich (less than 10%).

Nigerians need 60,000MW yet we generate 4,500Mw. People need electricity and they would go to any length to get it at the cheapest price. For the poor, they would rather buy a small, less than $100 = N16,000 generator that they'd be able to fuel with $2 = N320 and would meet their energy needs because they stay small rooms. The middle class could buy a $600 = N95,000 generator that he would fuel with $40 = N6,500 per week. The rich spend much more.

Cheap is the nigerian slogan. Chinese products thrive in Nigeria because they are cheap. The one-off payment that might last longer and save more doesn't really matter to nigerians. Once they can afford a product at any time, even if it would later cost them more than buying an expensive product that would last longer and perform better, they don't mind buying it over and over again.

Solar pays on the long run but the one-time payment for installation is not cheap for the poor and some middle class. Hence, generators are preferred.


Frawzey

You are exactly right - i'm very impressed with your knowledge of the sector.

This problem has been solved by the provision of financing to purchase the products, with a 20% deposit. So people are now able to buy solar and pay off over 24 months. The unlocking of the credit markets is the key to mass adoption of solar power in Nigeria, and there's a product that now does that.

Genius100:

You forgot to include the start up cost of solar power. Second, what if the solar apparatus breaks down? I'm not sure Nigeria currently has enough experts to make a hitch-free solar power experience a reality..

That IS the start up cost of Solar Power. There is only one cost of solar, and that is the start up cost. Once purchased, there are no additional running costs and they last for at least 25 years. They CANNOT break down, as there are no moving parts (the ONLY reason it will cease to work is because the people who installed it were morons). There is nothing to break down. Once installed, they continue to convert sunlight into electricity. It's actually a very simple technology, and is used extensively around the world.

Hi All

I'd like to start a discussion about the cost of Electricity in Nigeria today. The numbers make for interesting reading. And as they say, numbers don't lie.

Diesel Generator 71.7 Naira per kWh
Petrol Generator 69.5 Naira per kWh
PHCN Grid Electricity 23 Naira per kWh
Solar Power 15.5 Naira per kWh

Why on earth do Nigerians still persist on using generators?

Discuss

Hi All

I'd like to start a discussion about the cost of Electricity in Nigeria today. The numbers make for interesting reading. And as they say, numbers don't lie.

Diesel Generator 71.7 Naira per kWh
Petrol Generator 69.5 Naira per kWh
PHCN Grid Electricity 23 Naira per kWh
Solar Power 15.5 Naira per kWh

Why on earth do Nigerians still persist on using generators?

Discuss

Please look out for the launch of the biggest ever Energy survey in Nigerian history. It takes no more than 1 minute to complete online, and we want to get responses from 1 million Nigerians.

All respondents will get a 5% discount on all our products and services.

Regards

Uvie

https://www.nairaland.com/1234695/easiest-way-get-rich/3

Please follow this thread here

https://www.nairaland.com/1234695/easiest-way-get-rich/3

Please look out for the launch of the biggest ever Energy survey in Nigerian history. It takes no more than 1 minute to complete online, and we want to get responses from 1 million Nigerians.

All respondents will get a 5% discount on all our products and services.

Regards

Uvie

There is a distinct lack of original thinking on these boards. You always get the same old responses - Bulk SMS, Snail Farming, Phone Cards etc.

You can never get rich doing those businesses. There are far, far easier ways of getting rich, really rich right now in Nigeria. And it costs you nothing.

Any guesses what this could be?

Look out for the launch of the biggest ever survey into the energy costs of the average Nigerian, on a state by state basis.

Help us to reach 1 million responses. A Vanguard newspaper journalist is going to publish an article about the results.

More details to follow

Look out for the launch of the biggest ever survey into the energy costs of the average Nigerian, on a state by state basis.

Help us to reach 1 million responses.

https://www.nairaland.com/1234695/easiest-way-get-rich/3

More details to follow

Hi all

My original thread has been moved to the Adverts section of the business forum.

Please go there to keep up with the latest posts.

https://www.nairaland.com/1234695/easiest-way-get-rich/3

Regards

Uvie

Rotimi152: Pls, can I still apply.

Yes you can.

Regards

Uvie

signature2012: av read frm A-Z of this thread and am really impressed by u SIR,u av done a good job,i pray government policies will favour ur BIZNESS,coz many of diz generators importers are really behind power failure in Nigeria and they are very close with the people in power,av discuss the solar stuff with my boss,and he is interested,but dont make ur target alone to companies,av d average nigeria in mind to afford it in their homes @ cheaper amount,we all cant wait to see d product,ur office and website,am a very good marketer also,born and made,would appreciate if i can be a member of ur team here in lagos,this is my mail add james_agbama@yahoo.com.please dont put us on much suspense,coz av already started telling people about ur product already,wish to hear from u soonest.

Thank you for your kind complements. I will send you an email with details of how to apply to become one of our Sales Agents.

In the meantime, follow us on twitter, to get full and regular updates on our progress.

@solyntanigeria

Regards

Uvie

Peddylove: What is happening? I sent my c.v twice. I haven't heard anything from u, y?

Please confirm your name. I sent out additional information to all people who's CV's were received, requesting them to answer a 5 key questions. All initial shortlists were made on the basis of their CV's plus the responses to the questions. All prospective candidates MUST complete both tasks (CV and answers) to be considered for the next stage. Please do so if you have not already done so.

See below for reference.

1. Please tell us what you know about Solar Power
2. Why do you believe Solar Power is the solution to the energy crisis currently faced by Nigeria
3. What do you see as the biggest challenge in selling our Solar Power Systems to Nigerian homes and Businesses
4. How will you overcome this challenge?
5. Tell us what you believe makes you the ideal Sales Agent for Solar Systems

Regards

Uvie

Congratulations to the first batch of Sales Agents who have made it through to the next stage of the selection process. I have been very impressed by the quality of candidates that have applied, and their deep knowledge and understanding of the Solar Industry.

I'm looking forward to further communications with them in the next few days. Our recruitment efforts are still ongoing. We have set ourselves the ambitious target of having well over 1,000 employees and agents in total within 3 years. Unemployment levels in Nigeria, especially among the youth are unacceptably high, and anything contribution we can make to reducing that, however modest, will help.

By easing the power problem in Nigeria, we hope that each company in the country will be able to hire at least 1 extra person. With well over 10 million businesses in the country, that will make a big difference to the employment levels. Together, I believe we can really make a positive change in our great country.

Regards

Uvie

Zeddicus: ^^We are earnestly waiting for the launch Sir. Hopefully, there will be provisions to carry people in Abuja along simultaneously as you Launch in Lagos.

Yes there will. Demand from Abuja has been huge, so we will be executing a simultaneous launch in Lagos and Abuja in the next couple of weeks.

Regards

Uvie

Zeddicus: Find attached a compilation of important questions asked by people and answers given by Mr Ugono.I believe this will help a lot. Feel free to add more of his answers to your copy as they come.

A fantastic effort Zeddicus. I'm both humbled and impressed. However, it's my responsibility to provide FAQ's to all potential customers, and these will be listed on our website (ah, the fabled, mythical website - lets not even go there right now. Web Developers!!!!). Here is a list of some key points covered. Feel free to download for your own records. Be advised that all accredited Sales Agents will be given comprehensive marketing materials to distribute to all prospects, making the sales process easier.

This is certainly not an exhaustive list, and there is value in downloading the information i've provided on these message boards as well. But it's enough to answer the basic questions - enough to empower potential customers to book a free consultation, where our Sales Agents are able to provide far more detailed information in the form of our glossy Colour brochures.

SOLAR ENERGY EXPLAINED

What is Solar Energy
Quite simply, it is energy that is produced directly from the sun. It is by some order of magnitude the most powerful energy source on earth. It will never run out!

Is Solar power widely used around the world
Yes. In Germany, 3% of their entire power supply is generated by Solar panels, with a production capacity of 32,300mW. Nigeria’s entire electricity production capacity is 5,000mW. And Germany receives far less sunshine than Nigeria. In Australia, over 10% of all households now use solar power.

Are there any running costs associated with Solar Power
None. Once your system is installed, electricity production is completely free. There are no ongoing running costs.

Is Solar Power Affordable
Absolutely. In fact, recent price drops in the technology have made it significantly cheaper than diesel. The average family would recover the full cost of a 2kW system in less than 2 years. The more energy you consume, the shorter the payback period. A typical business such as a restaurant or petrol station would recover the full cost of a system in approximately 8 to 9 months. And guaranteed 24 hour electricity for life.

How much will I save
Solar Energy is the single best investment a Nigerian household or business could make. The average family will save N17.5m over 25 years, assuming that the cost of fuel does not rise. In reality, the savings will be much greater as fuel prices are due to rise by 50% once the fuel subsidy is removed in full.

The more electricity a household or business uses, the greater the savings. A typical bank branch spends N4m a month on diesel and will recover the full cost of the system in less than a year. Thereafter they will save N48m a year on diesel costs.

So, how is Solar Energy converted into electricity
Photovoltaic (PV) panels are designed to be able to capture the raw energy emitted by the sun and convert it into direct current (DC) electricity. They are typically mounted onto the roof of premises so as to get maximum exposure to the sun. The more exposure they get, the more electricity they generate.

What happens next
The DC electricity generated by the PV panels needs to be converted into alternating current (AC) electricity, as this is what most of our electrical appliances are run by (computers run on DC current). This is done by an Inverter, which takes the DC current fed directly from the PV panels and turns it into AC current. This AC current is then used to power all of your electrical appliances.

Ok, so what happens at night when no solar energy is being produced
This is where the battery array comes into play. During daylight hours, as well as supplying power to the inverter, energy is also transferred to the batteries to charge them up. When the sun goes down, the inverter automatically sources its energy from the battery bank, providing you with a continuous supply of electricity.

How long do the PV panels last for
The panels can last up to 50 years, and come with a full 25-year manufacturers warranty. We guarantee a performance efficiency of 90% after 10 years and 80% after 25 years.

How long do the batteries last for
We provide high quality deep cycle batteries that have a useful life of 5 years.


How long does the Inverter last for
The average life of an inverter is 10 years, and comes with a 5 year manufacturers warranty.

How do I know how which Solar Power System to purchase
This depends on your total daily electricity consumption. The more you consume, the bigger the system you will need to power your home or business.

How do I find out my daily electricity consumption rate
It’s simple. Our innovative Energy Calculator works out how much electricity you use each day, based on the number of appliances you use, their power rating (in watts) and how long you use them for each day.

Don’t I know that based on the size of the generator I use
No. The size of your generator is an indicator of how many appliances you can run simultaneously. The more powerful the generator, the more appliances you can run simultaneously. This is called your electricity load capacity and is determined by the size of your inverter.

Our Energy calculator allows you to work out your maximum load requirement, based on the maximum number of appliances you need to operate at the same time.

So, does the inverter need to be the same size as my generator
In simple terms, yes. However please bear in mind that generators are usually sold with reference to your maximum electricity load, and you typically only use maximum load for relatively short periods of time each day. Very often, you don’t actually need the size of generator you are using. And of course, the bigger your generator, the more money it costs you in fuel.

So I’m clear, what’s the difference between my electricity usage and my electricity load
Electricity usage is the number of units of electricity that you use each day and is measured in kilowatt-hours (Kwh). Electricity load is the amount of energy that is required to run all the electrical appliances you use simultaneously.

How much energy can the PV panels produce each day
A 1kW system will produce between 4kWh’s and 5kWh’s of electricity each day. The amount of energy produced by the PV panels is based on the amount of ‘Peak Sunlight hours’ received. In Nigeria as a whole, this ranges between 4 and 5 in the South, to as high as 9 in the North. The higher the peak sunlight hours, the fewer PV panels are required to generate the same amount of energy.

This is one of the main reasons why solar energy is more highly suited to Nigeria than the majority of countries; she is blessed with one of the highest levels of solar radiation in the world.

What is the average level of electricity usage per household in Nigeria
Recent studies indicate that the average electrified Nigerian household would consume between 6kWh and 8kWh each day if they received 24 hours of electricity. The actual recorded consumption rate is only 1.5kWh per day as most households do not receive 24 hours of electricity.

So a 2kW PV system would produce between 8kW and 10kW of electricity each day, enough to power the average Nigerian household for 24 hours a day.

How much maintenance do they require
Minimal. As there are no moving parts there is nothing to break down. The panels may need to be given a wipe every few months to remove any dust on them. That’s it.

As part of our service we offer free maintenance for the first 2 years.

Where are the PV panels installed
They are typically installed on the roof so they are exposed to the maximum amount of sunlight. They can also be installed on the ground if there is insufficient roof space (this will only apply in the case of businesses with large premises that require huge electricity generation capacity).

Regards

Uvie

toye4eva01: please i want to know what i can invest 50,000 in that will generate income every month. no matter how small the income is but something that can serve as an alternative income. i am a working class and i work from 6am till like 10pm so i dont have the time to go into businesses.
i will be glad if u can suggest several means to me
thank you

See the "Easiest way to get rich....." thread. Simply refer people to us, and for each sale generated as a result, get at least N25,000. And EVERYBODY needs our product.

Oh, and keep your N50,000 in your pocket. Its free for you to become a referrer.

Brand_new: Okay then, so who goes first?

check out the "Easiest way to get rich....." thread for your first entry. I doubt you can beat that.

There are literally too many opportunities in Nigeria. I'd rather keep some of them to myself at this time, as I have some of my workers progressing the launch soon.

Here's one for you to chew - A comprehensive car breakdown service, like RAC or AA. Here's another. The digitisation of the company registration process in Nigeria, similar to what the passport office has managed to do. Its taken nearly 3 weeks to get my company name registered. Here in the UK, it takes 3 hours. To my horror, it costs c. £600 in nigeria, and in the UK its £30. A very lucrative contract that would be, in the region of $100m.

@ yesman

I now have the time to address your well constructed post on a point by point basis. For everyone following this thread, please try to pay complete attention, as the explanations may get somewhat complex. I'll do my level best to simplify.

First the easy part - you have identified 3 ways in which a business can be successful, and these are of course correct at a top level. However, your conclusion that this therefore is a limitation to my business could not be more wrong. Let's look at each of your 3 points in turn:

1. Increase the size of transaction (Price): Your application of this statement is not strictly true. You have identified price as being the key variable - it is not. The key variable is MARGIN. That is, how much profit do you make per transaction, or in the case of the energy business, how much profit do you make per kW sold. You make reference to the fact that my product being the cheapest in the world is a negative, which somehow endangers the long term prospects of the business. You also make the point that goods are priced higher in Nigeria due to the harsh business environment. You are INCORRECT on both counts. (goods are priced highly in Nigeria because the cost of energy adds 40% to the price of all goods - many large manufacturers have closed shop and moved to Ghana as a result).

First, my product is the cheapest in the world (and significantly so) primarily because of ruthless efficiencies in our cost base. Our strong financial backing allows us to benefit hugely from enormous economies of scale. Secondly, and most importantly, the premium added to the cost of the product to cover sales and marketing is SIGNIFICANTLY cheaper than you can find in any developed country in the world. Why? Because sales and marketing costs in Nigeria are markedly lower than in any developed country, so I'm able to pass these cost savings on to the customer, without any damage at all to my margins. So, I will make just as much profit per kW sold as any US or Australian company because our SOFT costs (non hardware related) are so much lower. Add to that the cost of installation, which, given western labour costs compared to Nigerian Labour costs, are considerably lower. Each installation takes 1 day and requires a 4 man team. Labour costs in say, the UK are approximately £2,000 for the 4 man team (N480,000). In Nigeria, it costs a tenth of that. So that's an immediate and huge saving that I'm able to pass on to my customers in full, reducing the price we charge accordingly. In the UK, these costs are simply added to the cost of the unit, as I'm sure you can appreciate. Then factor in the cost of various permits and local council permits etc required in western countries, especially USA, and you begin to get the picture of just why Full installations cost so much more in developed countries, and why I'm able to offer a price far less than my counterparts. And bear in mind, my profit per kW sold is identical to any western installer. So in short, I'm able to offer the lowest prices in the world AND maintain a healthy margin because of a much lower 'soft' cost base. A quick fact for you (you must realise by now I love numbers), 50 -55% of the cost of Western Solar installations is made up of soft costs, and nothing to do with the cost of the actual product.

2. Getting more customers: you have given no consideration to the sheer size of the market in Nigeria, widely known to be the largest in the world. So let me spell it out for you. Our customers are made up of businesses and households. The business market is larger than the household market. There are about 10 million premises based businesses in Nigeria today, the vast majority of whom use diesel generator extensively. At very conservative estimates, there is 30,000mW of electricity capacity to be sold into these businesses. In financial terms, that's a market size of $135 billion dollars (N21.6 trillion).

Now for the household market. Current electricity deficit to be sold into is 25,000mW, which equates to $112 billion (N18 trillion). This does not account for the 60% of the nigerian populace who have no access to electricity (more on that later). Now bear in mind that the population continues to grow at a rapid rate, meaning the demand for electricity will grow into perpetuity. I hope you can see that the market size is so unbelievably large that we can quite comfortably make $10 billion in profits, and not have even scratched the surface.

3. Getting more purchases from our Customers: You have reached the natural and logical conclusion that my business plan has zero recurring income built in, because we are selling units up front, with no room for recurring income. You are actually very wrong on this front. What I have not told you is that a considerable amount of our profits will come from recurring income, where we effectively take the place of a Utility company, and provide the equipment free of charge to very large businesses in exchange for a 25 year electricity purchase contract. This is a win win for all parties concerned, as the company benefits from an immediate 80% reduction in their energy bills, we get an immediate sale of huge value, and are locked into a recurring revenue stream for the next 25 years. I'll say no more on that front at this time - lets just say that I have close on $500 million of UK investment funds just aching to dive in (I come from a London Banking background and have many contacts).

I certainly wouldn't worry about our ability to sustain ourselves financially. I assure that won't be an issue.

Now for the rest of your post. Firstly, please read my earlier post which deals with the deregulation of the market and the huge opportunity that brings. The key points to take from that post is that Nigeria is not even remotely close to being able to provide 24 hours electricity. At current capacity increase rates versus the rate of population growth, the power situation will be worse in 30 years time than it currently is.

For your point about the rich wanting to keep the status quo, well, that's simply a ridiculous statement. The cast iron laws of economics are clear for all to see. No rational human being will happily pay N6m a year for diesel, when for a one off payment of N6m, they can provide their entire electricity needs for at least the next 25 years. Just a ridiculous statement. That would basically mean they are quite happy to spend N144 million over the next 24 years (at today diesel prices) when they don't have to. Not even Bill Gates would do that. I'm sure you realise that's simply not a credible suggestion. And lets not even talk about the noise, pollution, safety hazard etc.

Now for panel security. I'm not sure whether you realise that the panels are secured to the ROOF of your house. That's right, they are literally nailed down to your roof. I'm not too sure how a thief would go about helping himself to the panels from there. And how will they get to the rest of the equipment - inverters etc. No, this is simply not credible.

Your point about the tapering off of sales should have been answered by referring to my analysis of the market size. No tapering will take place during my lifetime, and I'm 35.

You are right that an element of pessimism is required when launching a new venture. This reveals itself in research and planning of the most meticulous nature. I'd like to assure you that as well as running my highly successful online recruitment business in the US and UK, I have dedicated the last year of my life to planning my entry into this market. Not a stone has been left unturned in approaching launch. My background is one of high finance, where planning and execution are the watchwords. These have been my guiding principles in reaching this stage in the launch. I hope to demonstrate in the coming weeks, months and years, that my vision is indeed one that will reach fruition.

I'd like to make a brief point about the Sales Agents we are currently recruiting. To my mind, this is by far the most important element of the execution strategy. As you will know, DISTRIBUTION is a critical element in the mass penetration of any product into a new market. In working out the best distribution strategy to adopt, I was reminded of the example given by a former Business Professor renowned in the USA for teaching "The Business of the Drugs Trade" at one of the most prominent US university institutions. He makes the very good point that the illicit drugs trade is a multi billion dollar a year trade without any traditional distribution channels as used by normal multinational businesses. What these organisations have been able to do is effectively use the most powerful distribution channel known to man - people power. They literally have tens of thousands of unfortunate young men pushing their poison for them on the streets. Why? Because these guys dont have any other work and resort to drug dealing to make their living (anyone who's ever visited Baltimore, Crenshaw and parts of Atlanta as I have can attest to the terrible impact this has had on life there).

I looked at this example and thought to myself, "why not recreate that distribution model, except it's being applied to a totally legal and necessary product". And create MASSIVE incentives for our distributors, by paying extremely generous commissions, such that one sale a month is all that's required to earn the monthly wage of the average worker. Remember, we have 40 million unemployed graduates in the country, a tragic waste of fantastic talent. But more importantly, we'd be able to create lots and lots of Naira millionaires because the commissions are so generous. This would be a very proud accomplishment.

We take this further, and open the door to practically anyone to participate in our Referral program (they get commissions lower than our Official Sales Agents for obvious reasons, but still a tidy sum of money).

I'll leave you with an example. We have just received a pre order from a company that requires a 50kW system. The lead was provided by a referrer, who had been following this message thread (and despite our website not going live until tomorrow (fingers crossed - if you've ever worked with web developers, you know that today usually means in 2 days time, but hey, so it goes). He will shortly be picking up a commission payment of N12,500 per kW, totalling N625,000, by way of thank you from us. I'm sure he's suitably pleased. I certainly am, and so too is the customer. The only person not pleased is the diesel vendor. Sales agents receive N20,000 per kW sold.

I'll ask yourselves this question - do I want to get into the biggest renewable energy market, potential wise, in the world, or do I want to wait until your local area is saturated with Agents competing for every business and residential sale.

Apologies for the long post, but I felt it necessary to provide a full and frank response. Yesman deserved it for taking the time to post such a well crafted message, full of genuine questions designed to provoke thought. My sincere thanks to you.

Finally, a brief word on the pricing of electricity, and just why the world has finally woken up to the necessity of renewable energy in general, and Solar Energy in particular. The price of electricity is set to rise quite dramatically over the next 25 years as China, India, and Africa continue to industrialise at a rapid pace. The impact of this is already being felt heavily in the UK, where electricity prices have increased by 250% in 8 years, due to the ever escalating price of gas. All of the British Nigerians on this forum will be able to attest to the fact that energy prices have been increased by an average of 24% for each of the last 3 years - it's an utter scandal. Nigerians have "enjoyed" subsidised prices for many years. These are now being removed by the government, so as to encourage private investment in the sector. In other words, to allow them to freely charge higher prices and make a profit. As if your lives were not difficult enough.

The "official" price of a kWh of electricity in Nigeria today is N19, or $0.12 a unit. I can assure you that within the next 5 year, this will have at least doubled, through the complete removal of the remaining subsidy, and price hikes by PHCN. So expect a price of c. N40 a kWh soon. In comparison, at the prices we will charge for our products, the cost per kWh is $0.09 (N14). And that price is fixed for the next 25 years. So it's massively cheaper than grid electricity in Nigeria, never mind the crazy diesel generators.

I hope this post gives some more food for thought. Power is a very important issue for Nigeria's future, and it's up to us to solve the problem and unlock the enormous potential that lies within our population.

Regards

Uvie

Congratulations to the first batch of Sales Agents who have made it through to the next stage of the selection process. I have been very impressed by the quality of candidates that have applied, and their deep knowledge and understanding of the Solar Industry.

I'm looking forward to further communications with them in the next few days. Our recruitment efforts are still ongoing. We have set ourselves the ambitious target of having well over 1,000 employees and agents in total within 3 years. Unemployment levels in Nigeria, especially among the youth are unacceptably high, and anything contribution we can make to reducing that, however modest, will help.

By easing the power problem in Nigeria, we hope that each company in the country will be able to hire at least 1 extra person. With well over 10 million businesses in the country, that will make a big difference to the employment levels. Together, I believe we can really make a positive change in our great country.

We are continuing to recruit Sales Agents, so please submit your CV for consideration to:

jobs@solynta.com.ng

Regards

Uvie

yesman: @Barcode

I just stumbled upon this thread and I must say I'm very impressed with your vision and eloquence.

In my view, the 3 ways any business can be successful are : increasing the size of each transaction, getting more customers and getting them to make more purchases.

Therein lies your limitations, increase the size of transaction (price) and you price out most of your customers thereby restricting yourself to the rich and elite of society. Encouraging repeat buys from one is going to be almost impossible, as you say the product is built to last 25years. That leaves seeking new customers as the only way to grow.

You claim your product is one of the cheapest in the world, this can be both a good thing or a bad thing. Many products in Nigeria are priced higher than the rest of the world to accommodate the harsh business. My dear country, Nigeria, is (one of) the riskiest place in the world to do business (have you been able to register your business yet?). I do hope your margin is sufficient to sustain your business in the long run.

I admire your optimism and drive in providing a solution to Nigeria's epileptic power supply. However, the situation could change in the future as there are concrete plans by state and federal government (Gov Akpabio has just concluded laying gas lines in Akwa Ibom). Also, many private companies have taken keen interest in Nigeria's power situation evident in ongoing privatization scheme. The current situation may appear bleak, but the truth is that government down the line will recognize that providing constant electricity is the single way to appease Nigerians, and they will do just that eventually. When that happens, and declining sales of generators cause many businesses to shut down, what do you think would happen to your company then?

I noticed that you tend to rely heavily on numbers from research data. Are these numbers accurate? I suggest you conduct your own market research. Numbers don't lie but can be misleading. For instance, you assume that your product will automatically appeal to the rich, but have you considered what he/she should do with his current 12kVA generator after purchasing your Solar Power. The ultra rich are not as concerned about the price of diesel as you might think. Why change what is not broken?

What about security of panels. You can secure a generator house but can you do same for your panels. With spate of kidnapping, solar panels may just be an invitation for robbers and like especially if you first to take initiative.

I foresee a situation where you generate a lot of buzz and sales upon inception. This is likely to taper off as time progresses as you cannot really build a lasting relationship with each client you acquire (except your referral program performs well). If this happens, you'll have to rely on your margins to sustain you and I do hope it is sufficient.

Don't get me wrong, I am not against what you are trying to do. In fact I intend to follow this thread and maybe buy the product when I can afford. I'm just highlighting some points to be considered.

It pays sometimes to be a bit pessimistic when embarking on a venture.

I wish you the best of luck.

Please refer to my post above. It directly addresses your point about increased generation capacity. Please remember something, one way or another, YOU MUST PAY for electricity. It so happens that by far the cheapest way of "buying" electricity is by producing your own. It's the reason why Solar energy is really taking off here in the UK, Germany (despite no sunshine), Australia and USA. These are all countries with 24 hours of electricity provision, so why would everyone be killing themselves to go 'solar'? Because it's cheap, and saves you from the inevitable escalation of electricity prices as more of the world industrialises and demands ever greater amounts of fossil fuel based solutions, hence spikes in price.

I will address each of your points in turn in a later post - really busy right now.

Regards

Uvie

service giver: The easiets way to get rich is to build a residual income stream. This ensures that money keeps flowing into your bank account for life even long after you are retired. Its a system that leverages on the effort of other people to build your income portfolio. Imagine having more than 500 people all working while a fraction of their earnings is paid into your bank account every month. How does it sound to you?

This is all theoretical. People want to know, practically, what's the easiest way to get rich in NIGERIA. The answer is simple, sell a product that has, singularly, the greatest demand of anything in the country.

If you knew how much some businesses spend on diesel each month, your eyeballs will bleed. It's utterly crazy.

Let me assure you that selling a product to a business a product that reduces their annual cost from N48m a year, to N24m in the first year, and ZERO for all subsequent years, is just about the easiest thing you could ever possibly sell.

Believe it or not, from a business perspective, there are well over 15 million such sales out there waiting for you. And you don't need to worry about the stock, or actually executing the Installations etc. That is all taken care of.

Think about it people.

Rossikk: Barcholder, have you factored in the ongoing power sector reforms and how improved power supply could affect demand for your product in the long run?

You raise a very good point. The power sector reforms are designed to do PRECISELY what we are doing - to encourage foreign investment into the power sector. You see, the government finally realised that the only possible way the chronic power shortage was going to be resolved was by actively encouraging private sector investment. So they have finally privatised NEPA, and are in the process of totally removing the fuel subsidy that's still in place.

This then makes it a viable option for people such as myself to become an alternative provider of power, and hence improve the situation. The government themselves are no longer going to be directly involved in the provision of power (at least, not directly). Apart from anything else, this will significantly reduce the immense corruption that's been prevalent, and a key reason why the total power capacity is still so low, despite billions of dollars having been earmarked for new power stations over the last 20 years.

It's always good to use numbers to illustrate the sheer scale of Nigeria's power problem. The entire country only has an estimated production capacity of 5,000mW, however, demand is conservatively estimated at 60,000mW (please bear in mind that this demand does not include the approximately 60% of the population who do not have access to electricity at all). It would require a total production capacity of at least 120,000mW to provide uninterrupted power to the whole country, based on an estimated 180 million population.

Lets use some comparables. In the UK, the average yearly per capita electricity usage is about 2,000kWh. In order to for Nigeria to be competitive on a world scale as we all hope, it would need to have at least that level of per capita consumption capacity (and remember we don't have ACs here, and practically all heating is gas powered and not electric, so Nigeria would actually need significantly higher per capita capacity than the UK. As an example, the US has 4,500kWh per capita consumption rates). So what does this mean? Well, it basically means that Nigeria currently needs approximately 197,000mW production capacity NOW, to be on a par with the UK on per capita terms. We currently produce a pathetic 5,000mW (in fact it's less - I read an article online in November in which a person in authority boasted of achieving a record level of production for a day, at 4,750mW's - I nearly fell off my chair laughing). So you should be able to see that Nigeria is so so far away from achieving anything like the level of production capacity needed, and certainly not if it's done centrally by building power plants. It's way too expensive, takes way too long to be commissioned, and frankly, ain't gonna happen. This leaves the door absolutely wide open for Solynta to fill the void by creating a massive nationwide distribution network and selling on a individual basis. For a problem as large as our's, this is by far the most efficient way of attacking the problem.

Now factor in the continued rapid growth of the Nigerian population - it's estimated to have the 3rd largest population in the world by 2050, at approximately 450 million. Then apply the numbers above, and you can see that this is a market so absolutely huge that the profit potential cannot be filled by any one player in the market.

There really could not be a better time for the revolution to start.

Regards

Uvie

A big thanks to everyone who politely asked for my posting rights to be restored. Seun kindly obliged, and has restored all rights.

Big thanks Seun as well.

Look out for my next post later on today.

Regards

Uvie

A message to all nairalanders following my thread in the business section:

I have inexplicably been barred from posting any further messages on that, or any other business related forum, despite no contravention of the house rules.

As such, I'm unable to post any further comments until the moderators resolve the situation. I'm extremely disappointed with the moderators and have requested that my posting rights be reinstated.

The issue of Nigeria's power problem and resolution is too important to be the subject of the whims of moderators.

Anybody wishing to contact me by email can find my email details in the thread. I hope to be able to resume my posts soon. Similarly, details of our website will be shortly released.

Regards

Uvie

usoeva: @Barchelor, i will certainly love to be a part of this. have actually sent you a message but bounced back to my mail box. expecting more information soon

Please send the message to the following email address:

uvie.ugono@solynta.com.ng

Looking forward to your message.

Regards

Uvie

Chizin: Hmm, my hands and legs are crossed seriously waiting for the launch of this mighty website that will be able to transform our Nation, Nigeria. Keep it up my brother. This is a great innovation, I must say.

Thank you for the support. We will do our best to deliver real change. We must stop waiting for the government to do it. If people had waited for the government to build the telephone landline infrastructure, nobody would have access to phones today.

Change comes from the people, who are able to devise solutions to everyday problems at rapid speed.

Regards

Uvie

babaearly: No you missed my point. I meant that you may have satisfied willing participants with what you have said so far that i can use them as initial sales pitch,for your product of course.
Ill also advice you create seminars to promote it.

My bad. I did indeed misunderstand your point. Accept my apology.

You are on point with your reasoning. I will be conducting a series of offline seminars and webinars, which will serve as educational platforms for people on the truly transformative power of Solar Energy in Nigeria.

Ultimately though, execution is the key to achieving our stated objectives. The creation of a huge, and successful distribution network is critical to that, and there is no more efficient method of distribution than utilising people power - giving them the opportunity to get rich in the process. To me, its a win-win situation for all concerned, and we kill several birds with one stone:

1. The people suddenly have a lot of disposable income
2. Which they spend in the local economy
3. Allowing more jobs to be created
4. Which in turn creates more demand in the economy
5. The improved power supply for households and the significant reduction in business costs opens the opportunity for many new businesses to be created
6. And encourages foreign investment into NIgeria

I believe this is the blueprint to developing our great country.

Thanks for your positive contributions.

Regards

Uvie

babaearly: Wise ones will copy all your explanations as faq + your referral tools and go out there to sell your solar systems.its only the go ahead thats needed.@ Barcholder

If you think that's even remotely possible, then you don't know the first thing about business. Most people have the misguided notion that an idea by itself constitutes a business. It isn't.

Business is 99% execution. I welcome copycats. Do you really believe its possible for one company to monopolise a $2.5tn market? I fully expect copycats and fakers. But rest assured, it will have no impact on the speed of our growth.