… slams TCN over recent $155m meter deals

Oredola Adeola

The Association of Meter Manufacturers of Nigeria (AMMON) has stated that President Bola Tinubu’s “Nigeria First Policy,” which prioritizes the use of locally manufactured goods in public procurement and emphasizes technology transfer and capacity-building, will help unlock the full potential of the nation’s industrial sector.

Engr. Durosola Omogbengun, President of AMMON, made this known in a statement obtained by Advisors Reports at the weekend.

Advisors Reports gathered that AMMON is a coalition of industry leaders representing 40 certified Local Meter Manufacturers and Assemblers (LMMAs).

According to AMMON, which the “Nigeria First Policy” will unlock the full potential of Nigerian industries, prevent capital flight, stimulate job creation, and accelerate backward integration.

The President of AMMON therefore stressed that his members have the capacity to provide and install adequate meters for all consumers.

He stated, “With the enactment of the “Nigeria First Policy”, AMMON remains ready and equipped to showcase its ability to provide meter for the country.

“Our members currently boasts of combined installed capacity of six million meters annually and holding over 250,000 compliant meters in country, ready-for immediate deployment while continuing production to meet future demand.

“Our records show that AMMON/MAP have delivered quicker and in multiples of any foreign procurement project undertaken.

“World Bank project delivered 75,000 meters out of 1.25million meters in 20 months while AMMON delivered 1.7million meters in 12 months of 2021.

“We are still able to do that if similar funded procurement is provided to AMMON.”

The association urged the government to fully operationalize the “Nigeria First Policy” in the structuring Nigeria Distribution Sector Recovery Program, DISREP II and Presidential Metering Initiative, PMI, adopting National Competitive Bidding (NCB) as the default mechanism to ensure local content inclusion.

“This will prevent capital flight, stimulate job creation, and accelerate backward integration.

According to AMMON, “Nigeria’s metering industry is a cornerstone of national development, and with the right policy support, it can graduate from early-stage manufacturing to full manufacturing, thereby positioning Nigeria as a regional export hub under AfCFTA.

“Mr. President, your leadership inspires confidence and renews hope in Nigeria’s industrial future. We pledge our full cooperation and continued dedication to the success of your administration’s Renewed Hope Agenda.”

Industry statistics, “The association highlighted that there are 42 Local Meter Manufacturers in Nigeria, with a combined installed capacity of 6 million meters per annum, employing 10,000 workers directly and 30,000 indirectly.

AMMON also noted that local meter manufacturers have installed 2.6 million meters and 850,000 National Mass Metering Programme (NMMP) meters between 2020 and 2024.

It stated: “The contribution made by local meter manufacturers, especially from 2021 to 2024 was achieved at the cost of N353.7 billion (at today’s price for single & three phase meters and excluding CBN funded NMMP Project of 850,000 meters).

“This amount was financed by LMMA/MAPs locally.”

AMMON further expressed concerns about contracts with Chinese firms, citing slow delivery and high costs.

The Association claimed, “Recently TCN/ PMU the department in the Transmission Company of Nigeria signed contract with two Chinese companies to supply 1.25 million meters at the whooping cost of over 100 million USD using Loans from the World Bank.

“Before the execution of this procurement process, we advised the FGN then in the last administration to allow local meter manufacturers to participate in this transaction and we had cogent reasons, but we were denied the opportunity.

“Since commencement of this transaction only 75,000 meters out of 1.25 million meters have been delivered by these Chinese companies.

“Those meters are still uninstalled defeating the aim of resolving the liquidity crisis which AMMON is doing daily with no incentive or assistance from any quarters.” AMMON said.

The President of AMMON, speaking on behalf of the Executive Committee, further criticized the Transmission Company of Nigeria (TCN) for proceeding with another World Bank-funded procurement of 1.55 million meters despite the failure of a previous foreign procurement, warning that it could significantly harm local meter manufacturers.