The Transmission Company of Nigeria awarded two Chinese companies contracts worth over N160 billion to produce energy meters, excluding Nigerian manufacturers.
This was revealed in a statement released on Monday by Durosola Omogbenigun, president of the Association of Metre Manufacturers of Nigeria.
This comes as TCN, despite pleas to support local manufacturers, negotiated with two Chinese businesses to supply 1.25 million meters, valued at over $100 million, using a World Bank loan.
AMMON voiced worries about the Chinese businesses’ speed at completing the contracts, pointing out that just 75,000 of the 1.25 million meters had been delivered thus far.
According to AMMON, despite the questionable contract execution performance in the first procurement by TCN, the agency has planned to embark on another World Bank procurement of 1.55 million metres from a foreign company.
AMMON reacting said, TCN ignoring local firms for foreign companies “will contribute in no small measure to killing local manufacturing.”
“Recently, TCN/PMU, the department in the Transmission Company of Nigeria, signed a contract with two Chinese companies to supply 1.25 million metres at the whopping 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 metre manufacturers to participate in this transaction, and we had cogent reasons, but we were denied the opportunity.
“Since the commencement of this transaction, only 75,000 metres out of 1.25 million metres have been delivered by these Chinese companies. Those metres are still uninstalled, defeating the aim of resolving the liquidity crisis, which we, AMMON, are doing daily with no incentive or assistance from any quarters apart from our belief in our nation.
“Despite the dismal failure of the first foreign procurement, TCN is going ahead with another World Bank procurement of 1.55 million metres, which will contribute in no small measure to killing local manufacturing,” it said.
According to the association, indigenous companies have 100 percent competence to deliver in electricity metre manufacturing.
AMMON said from 2021 to 2024, local metre manufacturers produced N353.7 billion worth of electricity metres.
“The contribution made by local metre manufacturers, especially from 2021 to 2024, was achieved at the cost of N353.7 billion (at today’s price for single- and three-phase metres and excluding the CBN-funded NMMP Project of 850,000 metres). This amount was financed by LMMA/MAPs locally,” it added.
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AMMON urged the Nigerian government under President Bola Ahmed Tinubu’s administration to prioritise local manufacturers.
“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,” AMMON said.
Recall that Tinubu recently approved the implementation of the Nigeria First Policy and a ban on foreign goods.
