Business and Economy
$155 Million WB Loan: Senate Seeks Protection for Local Meter Manufacturers ….Says they can produce world standard smart electricity meters
By Iyojo Ameh
The Senate has advocated protection for local metre manufacturers following the approved US$155 Million World Bank loan for the National Mass Metering Programme, NMMP of the federal government.
The resolution was sequel to a motion to that effect sponsored by Senator Victor Umeh representing Anambra Central during plenary in Abuja
Presenting the motion, Senator Umeh, noted that it is the duty of industry procurement regulators in every developing economy to protect the local manufacturers “and would only try to augment importation of goods and services where there is a clear-cut gap between local production and consumption.
He said: “Members of Association of Meter Manufacturers of Nigeria, AMMON, are capable of producing world standard smart electricity meters, hence the Transmission Company of Nigeria, TCN and the Nigerian Electricity Regulatory Commission, NERC under Phase 1 of the Mass Metering Programme of federal government, issued the association, after a competitive bidding process a ‘Letter of No Objection’ to award four million meters in 2022.
“The Central Bank of Nigeria, also in 2020 undertook to fund the National Mass Metering Programme, NMMP Phase 1, but after eight months of awards to local manufacturers, withdrew funding which affected the workability of the programme.”
Senator Umeh also revealed that the World Bank has approved US$155 Million loan for the National Mass Metering Programme.
He was, however, worried that “the ongoing World Bank funded NMMP Phase 2 seeks to promote foreign companies participation against competent and pre-qualified local meter manufacturers will ultimately result in the loss of jobs and revenue”, adding that “a deliberate policy to prioritize local manufacturing will catalyse job creation and economic growth.”
The lawmaker informed that the TCN, on behalf of the World Bank, closed bidding advertisement on July 11, 2023 and further extended it to July 25, 2023 for the supply and installation of 1.2 million smart meters to the 11 distribution companies in the country.
He said the bidding criteria, which could only be satisfied by foreign companies, have totally marginalized and eliminated the participation of the 35 local meter manufacturers, adding that if allowed to continue would be disastrous to AMMON members, who have invested billions of naira in the sector and currently employs 10,000 direct workers and over 30,000 indirect others.
In its resolutions, the Senate urged the federal government to immediately suspend the TCN Tender for the World Bank funded NMMP Phase 2 in order to undertake comprehensive review of the procurement criteria to prioritize local manufacturing and assembling in line with the Local Content and Backward Integration Policy that catalyzes focal capacity building, employment generation and economic growth for Nigeria.
It also asked the TCN and other stakeholders to negotiate and engage the African Export-Import Bank, AFREXIM, and the African Development Bank, AFDB for alternative loan if World Bankloan conditions do not favour local economic growth at this critical time of massive unemployment and devaluation of naira.
The Red Chamber further called for the assessment of the Central Bank of Nigeria, CBN intervention funds for members of AMMON with a view to further developing the sector and boosting the nation’s economy.