The Manufacturers Association of Nigeria (MAN) has voiced its apprehension regarding the potential displacement of local meter manufacturers and assemblers in the downstream power sector due to the Nigerian government’s implementation of the National Mass Metering Programme (NMMP) Phase II.
The project, which aims to supply 1.2 million smart energy meters with funding from the World Bank, has raised concerns among local manufacturers.
TechEconomy understands that between January 2019 and January 31, 2021, local manufacturers successfully deployed and installed a total of 611,231 energy meters across the country.
MAN issued a statement expressing its worry that the financial requirements and technical specifications outlined by the Transmission Company of Nigeria (TCN) appear to heavily favor foreign manufacturers.
These requirements are deemed excessively stringent and contradict the guidelines set by the Central Bank of Nigeria for the NMMP implementation.
Manufacturers highlight that they have made significant investments in expanding their manufacturing capacities in line with the Federal Government’s backward integration policy and the introduction of the NMMP.
They have also extensively trained and promoted a highly skilled workforce to meet the power sector’s demands as envisioned in the Nigeria Electricity Supply Industry.
The statement emphasizes the potential repercussions of excluding local manufacturers, citing a previous instance in 2012 when they were sidelined in meter supply, resulting in the delivery of substandard meters by foreign companies that were initially awarded the contract but were later removed from the network.
MAN warns that a similar scenario may be unfolding, which poses significant risks to the power sector.
While the TCN argues that the installation of meters will create employment opportunities for Nigerians, MAN contends that the scale of job creation will pale in comparison to what could be achieved by including local manufacturers in the scheme.
MAN estimates that the inclusion of local manufacturers would lead to a job creation ratio of 1 to 10, far surpassing the potential employment opportunities from the installation alone.
Furthermore, MAN asserts that the apparent intentional denial of opportunities for local manufacturers fails to recognize their commendable performance thus far.
IMAN calls for a reconsideration of the current approach to the NMMP Phase II project. They advocate for the inclusion of local manufacturers, emphasizing the potential benefits for the power sector, the national economy, and employment generation in Nigeria.
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