ABUJA, Nigeria — The Association of Meter Manufacturers and Assemblers Nigeria, AMMON, has voiced its opposition to the Nigerian Federal Government’s plan to use a World Bank loan of $155 million for the importation of electricity meters.
AMMON’s Secretary, Engr. Durosola Omogbenigun, expressed the association’s concerns during a press briefing on Thursday, July 6, 2023, in Abuja.
He urged the government to put an immediate stop to the Transmission Company of Nigeria’s (TCN) tender opening for the project.
TCN had published the tender as part of the Nigeria Distribution Sector Recovery Program, DISREP, aimed at bridging the metering gap in the country, with the backing of the World Bank’s $155 million project.
However, Omogbenigun criticized the initiative, claiming that the evaluation criteria for the bid seemed tailored to exclude local Nigerian meter manufacturers.
He argued that if the policy is implemented, it would lead to job losses in Nigeria and deprive the local economy of the benefits that the loan is meant to bring.
“We found out that the evaluation criteria by way of turnover, cash flow, and experience for the bid seem to be designed to eliminate the local manufacturers,” said Omogbenigun. He added, “Our interest today is to quickly state that this World Bank project is inimical to the growth of the manufacturing sector, the progress that has been made in the local content policy as stated in Executive Order 003 of 2017, and also negates the gains that have been achieved in backward integration, technology transfer, and employment within the industry.”
Omogbenigun argued that the funds should be allocated to local meter manufacturers, who, according to him, possess the capacity to produce the meters.
He stated that granting foreign companies licenses to import fully assembled meters with zero import duty would harm the local industry.
Ifeanyi Okeke, the Treasurer of AMMON and Chief Executive of Holley Metering Limited, supported Omogbenigun’s remarks and emphasized that local meter manufacturers are capable of meeting the World Bank’s target of 1.2 million meters.
It’s worth recalling that in 2021, the World Bank approved a $500 million loan for the revitalization of Nigeria’s power sector, especially the distribution value chain.
The stance of AMMON raises concerns about the balance between supporting local industries and meeting urgent infrastructure needs.
The Federal Government will have to consider these factors carefully as they decide on the way forward for the DISREP program.
