Working Lives: The 55 Year-Old Generator Seller who wants to study Mechanical Engineering

Oluwatomi OtuyemiJune 10, 2022

10 minutes read

In fact, my ambition was to become an engineer. I would still love to go back to school to train as a mechanical engineer. I would most likely put in for a part-time programme. I just love the idea of being certified for a profession.

What is your name and where are you from?

My name is Chinedu Obas. I am from Igbo Etiti Local Government Area in Enugu State.

Tell us about your Education

I attended Uba Abari Primary School in Nsukka. After my primary education, I proceeded to Community Secondary School, Ohodo in Enugu State.

Why did you not go for higher studies?

Back then, in my village, completing a secondary school education was considered a big achievement. So, after my secondary education, my father told me he could not afford to sponsor my education anymore.

Tell me about your family

I am the third child of five children. My mother is from Ebonyi State and my dad is from Enugu State. My dad worked as a traffic warden in Enugu State before his retirement in 1999. My mother was a full house wife who only goes to farm when the need arises. My mum and dad still live together in Enugu State.

Are you married?

Yes, I am married. I have four children – three boys and a girl. My wife is a businesswoman. She sells food items at Oyingbo market.

When did you come to Lagos?

I came to Lagos in 1985. Coming to Lagos was a dream come true for me. Back then, in my village, it was always as if anyone going to Lagos was traveling abroad. We saw Lagos as the land of money, so we all prayed for a day that someone will come take us to Lagos. I used to have a big brother in my neighborhood back in Enugu whom I looked up to. He was based in Lagos but visited the village often. I had discussed with him that I would love to relocate to Lagos and he promised to assist me after my secondary school education. He was into generator spare parts business and he needed a sales boy. He visited my parents in the village and he requested to take me to Lagos to work for him. An agreement was signed that I will serve him for 12 years and thereafter get my freedom. I have been in Lagos for 37 years.

How did you venture into this business?

Starting this business was not easy. I started learning at age 18 after I relocated to Lagos. I was very young and new to the city; my senior colleagues took advantage of that. They would always send me on errands; I would be the first to get to the shop and the last to close the shop, I washed their clothes and bought food for them as well. While learning, I made money from selling generator parts. I would add extra cost to the price of goods for customers who do not know the actual amount the product was worth. After remitting the actual money to my master, I could have about N8,000 or more as profit daily. During that period, I saved N5,000 daily from the profit I made from selling. After I completed the 12 years of service and learning, my master gave me the sum of N500,000 to start my own business. I could not set up my business immediately because the money I had at hand was not enough. Renting a shop alone was about N600,000 at that time. So, I had to hustle for a while to raise more money. I worked as a sales representative for a senior colleague who was into generator business. I worked for him for five years. He paid a stipend of N10,000 monthly. However, after five years, the cost of goods and renting a shop at Oyingbo had increased. So, I thought to partner with my longtime friend who was also in the same line of business.

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How did you meet your friend and what kind of relationship did you have with him before the partnership?

I met my friend turned business partner while I was with my master. He was also learning the business at that time but with another master. He was about a year into his training when I came to Lagos. On a fateful day, a customer requested for a Tiger brand, we did not have that brand in my shop so my master told me to go ask our neighbor if he had the brand. My friend was the only one at his master’s shop that day, we discussed for few minutes, I got the brand and that was how our friendship started. I mentioned earlier that I made money while working for my master, my friend taught me the tricks to earning while learning. As time went by, we became really close. He is honest and hardworking. He is from Enugu State as well.

How did the partnership start?

After five years of working as a sales representative at Oyingbo, I was able to raise N1,000,000. That made a total of N1,500,000 after adding the money my master gave me. However, the cost of renting a shop alone was about N900,000 or more, depending on the size. I still could not afford to stand alone. So, I thought that I could not continue working for other people for the rest of my life. That was when I decided to reach out to my friend. He was working for a generator seller at that time while trying to raise money to set up as well. I discussed the idea of partnership with him and he agreed. He added N1,500,000 to mine, we signed a Partnership Agreement, rented a shop at Oyingbo for N1,000,000, stock up the shop with goods. That was how we started; we have been growing stronger together since then. We started this business in 2002 with N3,000,000.

How do you manage the company’s finances?

Managing our finances together has never been a problem. We run a business account where all money made from the business are remitted. Neither of us can make withdrawals from the account without the other’s approval. We share profits together. We have never had disagreements over money. We also have clear rules and regulations of the company which we both adhere strictly to. We have three apprentices presently.

Where do you buy generators from?

I buy generators and generator parts from Alaba international market. I do not import them, those that import generators are based in Alaba. There are some other people who import goods from China but are not based in Nigeria. They have representatives who manages their businesses here in Nigeria. We buy from these representatives as well.

Do you always have funds to buy goods or you buy on credit?

I do not like taking loans due to the terms and conditions and also the embarrassment that comes with it if you do not pay back as and when due. Quite a number of my colleagues’ shops have been closed down by banks and other loan agencies they took loans from, because they could not pay back within the given time frame. My partner and I have a good relationship with the importers. So, they sell to us on credit even if we do not have the complete funds to buy goods.

What brands of Generator do you sell and how much do you buy them?

We sell Sumec, Elepaq, Elemax, Firman, Tiger products and so on. For example, we buy Sumec 2.5 KVA at the rate of N115,000 to N120,000 and we sell between N140,000 to N150,000. Generators are very expensive now due to the increase in dollar rate. We are losing patronage because of the high cost of generators.

How much do you make as profit?

We make at least N10,000 profit on each sale. There are days that we make more, depending on the bargaining power of the customer. This is after we have subtracted the cost of transporting the goods, bribes to policemen and payment to police escort. This business is very profitable, as long as you are not indebted to anyone.

How much do you buy generator parts and how much do you sell them?

There are different components of a generator. We have alternator, engine, voltage regulator, battery charger, carburetor, etc. The cost of generator parts depends on the capacity of the generator. I recently sold a 12KVA Atlas Alternator for N195,000. I bought it at a rate of N168,000. That gave me a profit of N27,000. Different generator parts have different cost.

How often do you buy generators and generator parts into your shop?

We restock the shop once in two months. However, I go to the market to buy generator parts weekly. The demand for generator parts is higher than generators now. We could go a week without selling one generator but demands for generator parts will always come every day. I buy generator parts from Alaba market as well. Sometimes, I contact the seller to place orders and the goods will be delivered to my shop.

Who are your customers?

Our major customers are engineers who repair generators for their clients. We rarely see outsiders patronize us. We also have customers who sell generator parts. They buy from us in large quantities and resell thereafter. These two categories are our major customers.

Also Read: Choosing The Best Generator for You

What time of the year do you make most sales?

We make sales anytime of the year. However, we make more sales during dry season. Some people cannot survive without power, so they either come to buy generator or fix the old ones they have. We also make good sales during festive season; some customers buy generators and give them out as gifts and some buy to take to their village to celebrate with their families.

Which brand do people buy more and why?

All generator brands are been used in this country. Most people tend to go for the brands they see others use. Brands like Elepaq, Sumec and Firman are always been requested for by customers. However, the demand for Elepaq surpasses the other brands because of the belief that Elepaq is strong. The truth is that all the brands are good, it depends on how the user maintains and services the generator. If the user services the generator well and does not overload it, the generator will surely serve the user for a long time.

How much do you make in a week?

We make between N500,000 to N600,000 in a week. We make this amount if we sell about two or three generators in that week. But if not, we make about N300,000 or more in a week which usually comes from sales of generator parts.

How much do you make in a month?

Our monthly income is totally dependent on the sales for that month. However, after replacing the goods that have been sold out, we make between N300,000 to N350,000 as profit. This includes sales of generators and generator parts.

Do you have savings and how much do you save?

Yes, I have savings. My colleagues and I are into weekly contribution. We contribute N15,000 every week. And at the end of the week, Friday precisely, someone goes home with N300,000. We rotate it every Friday. That is the only form of savings I am into right now.

How many hours do you work in a day?

I work between 7am to 10pm from Mondays to Fridays. On Saturdays, I work between 8am to 9pm. I go to church on Sundays and also attend to family meetings. So, I work for 15 hours on a weekday and 13 hours on Saturday.

How much do I need to start generator business?

If you can raise between 4 million to 5 million naira, I think you are good to go. This will cover shop rental and renovation, agent fee, and buying goods.

What is the difference between when you started this business and now?

The costs of goods are very expensive now as compared to when I started in 1999. The cost of transporting the goods after buying is another expense which has increased drastically. We also get to pay police escorts who assist in safeguarding the goods while transporting to our shops. With N50,000 years back, you could settle transportation cost and pay police escort. But now, we pay as much as N200,000 for transportation and police escort.

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For how long have you been in this business?

I have been in this business for 20 years.

For how much longer do you see yourself doing it?

This is the only business I know. I have no plans to quit.

Have you obtained any tangible achievement(s) through this business?

Well, I can say that this business has taken me from the league of the “poor” to the “middle class” at least. Presently, I can boast of a 3-bedroom apartment, I set up my wife’s business and my children attend one of the best schools in town; I achieved all these through this business. I might not be extremely rich but I will say that I am doing well for myself in this business.

Do you regret not going to the university?

Looking back at how I started as a generator seller and what I have achieved today, I have no regret at all. I have always loved school though, I had good results during my primary and secondary education. In fact, my ambition was to become an engineer. I would still love to go back to school to train as a mechanical engineer. I would most likely put in for a part-time programme. I just love the idea of being certified for a profession.

Do you have plans to own a generator business of your own?

Yes, I do. I am making plans to start a generator business of my own few years from now. I am saving much as I can now. I intend to run my personal business alongside the partnership. That will make two sources of income for me.