Local Meter Manufacturers Kick Against Exclusion from $155m World Bank Facility

Emmanuel Addeh in Abuja

Local meter manufacturing companies under the Meter Manufacturers and Assemblers Association of Nigeria (MMAAN) have kicked against being effectively shut out from meters’ production and importation by the new rules enunciated by the Transmission Company of Nigeria (TCN).

In a press briefing in Abuja, the Secretary of the organisation, Mr Durosola Omogbenigun, stressed that it had become imperative to bring to the attention of the Bola Tinubu-led administration the plan to leave Nigerians out of the World Bank facility for the ongoing 1.25 million meters in phase 2 of the production.

The association stated that the decision of the federal government to use a World Bank loan of $155 million to support the importation of electricity meters into the country was untenable.

The group insisted that the move by the government to bridge the over 8 million metering gap in the Nigerian electricity market was being jeopardised by the new rules.

Recall that the TCN had in a tender publication unveiled stringent requirements before a vendor could access the loan, which effectively ruled out local manufacturers.

But the local manufacturers insisted that implementing the policy would mean taking away Nigerian jobs and depriving the economy of the benefits the loan was meant to deliver.

Omogbenigun noted that the government has to urgently halt attempts by the TCN to open tenders billed for July 11 for the project, explaining that the fund should rather be made available to local meter manufacturers who have the capacity to produce the devices.

The secretary explained that the criteria set out by the TCN in terms of performance bond, experience, turnover and cash flow was designed to eliminate local companies.

He stated that granting foreign companies the licence to bring in fully built meters at a zero import duty would cripple local companies, pointing out that local meter manufacturers successfully produced and distributed the 1 million meters deployed during the phase-0 of the National Mass Metering Programme (NMMP).

He noted that the programme, which was funded by the Central Bank of Nigeria (CBN) enabled local manufacturers to expand their factories and engage more workers.

Omogbenigun therefore advised the government to make the loan available to the local manufacturers so as not to kill local businesses.

 “Let the local meter industry utilise this money to produce the same meters that you want foreign companies to bring in. And we believe that in our own patriotic way we should make our voice heard, bring the issues to the table and work with the government to create an enabling environment for industrialisation, manufacturing and production.

“That will make sure that the tax base of the government is increased, employment is stimulated. That will make sure that there is technology transfer, that local content is increased in our production and backward integration is stimulated and sustained,” he said.

The association’s national secretary explained that its members have already invested millions in projects to ramp up manufacturing of meters in the country, maintaining that any plan to cut off local manufacturers will eventually short-change the country.

Also speaking, the Treasurer of the association and Chief Executive of Holley Metering Limited, Mr. Ifeanyi Okeke, stated that local companies have the capacity to meet the 1.2 million metering target of the World Bank.

He added that having been cut off from the phase one of the metering project, it would  be unfair to local manufacturers to shun them in the phase two being funded by the World Bank.

In his remarks, Ogochukwu Okani, also a representative of the organisation, stated that if the oncoming programme by the World Bank progresses, the players will be forced to lay off their workers.