The Association of Meter Manufacturers of Nigeria (AMMON) has voiced significant concerns regarding the ongoing practice of awarding contracts for electricity meter supply to Chinese firms, particularly in light of Nigeria’s capacity for local production. This criticism has intensified following the recent $100 million contract granted by the Transmission Company of Nigeria (TCN) for the delivery of 1.25 million meters, a decision that AMMON describes as a clear disregard for local manufacturers and a betrayal of the government’s proclaimed “Nigeria First Policy.”
Durosola Omogbengun, President of AMMON, emphasised the lack of progress on the contract, revealing that only 75,000 meters have been delivered nearly two years into the project. This delay is exacerbating the existing metering gap, leading to ongoing issues with liquidity in the electricity sector. Omogbengun remarked, “Since the commencement of this transaction, only 75,000 meters out of 1.25 million have been delivered. Those meters are still uninstalled, defeating the aim of resolving the liquidity crisis — which we, AMMON, are addressing daily without incentives or government support.”
Moreover, AMMON has expressed alarm that TCN plans to award yet another contract, this time funded by the World Bank, for an additional 1.55 million meters, yet again sidelining local manufacturers. This path, said Omogbengun, not only threatens to undermine the local industry but also risks significant capital flight from Nigeria.
The association, representing 42 certified manufacturers and assemblers, has called for the federal government to fully enforce its “Nigeria First Policy”, especially within the framework of the Distribution Sector Recovery Programme and the Presidential Metering Initiative. AMMON advocates for National Competitive Bidding as the default procurement method to ensure local inclusion and support the burgeoning manufacturing sector.
In previous years, AMMON has demonstrated its capability, having delivered 1.7 million meters under the Meter Asset Provider (MAP) scheme within a year in 2021, significantly outperforming foreign companies. This performance prompts the association to argue that local firms can effectively fulfil national metering needs and potentially transform Nigeria into a hub for regional meter exports, particularly under the African Continental Free Trade Area (AfCFTA).
“Local capacity in the metering sector is crucial not only for economic growth but also for employment generation,” stated Omogbengun, noting that the sector currently supports around 40,000 jobs directly and indirectly. The association asserts that from 2020 to 2024, local manufacturers are poised to install more than 2.6 million meters, including 850,000 units as part of the National Mass Metering Programme.
Additionally, AMMON’s calls for a strategy that prioritises local production are underscored by evidence from various procurement processes that favour foreign entities, which they argue have not delivered results commensurate with local capabilities. As part of their advocacy, AMMON has signalled its readiness to collaborate with the government to address Nigeria’s metering challenges effectively.
In a recent development, AMMON temporarily halted its legal actions against the Nigerian government concerning procurement practices after a dialogue with the Minister of Power, who assured them of inclusion in future bidding processes. This intervention suggests a shift towards greater collaboration, which AMMON hopes will lead to meaningful improvements in the local metering industry.
The sustainability of Nigeria’s power sector hinges on a balanced approach that incorporates local manufacturing strength while simultaneously leveraging international expertise when necessary. AMMON’s commitment to supporting President Tinubu’s Renewed Hope Agenda underlines their resolve to contribute positively to Nigeria’s industrial landscape, believing that local production can and should be at the forefront of the nation’s metering strategy.
“Your leadership inspires confidence and renews hope in Nigeria’s industrial future,” Omogbengun concluded, portraying a forward-looking vision for the country’s manufacturing sector that is both ambitious and achievable.
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Source: Noah Wire Services
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