Manufacturers caution exclusion in Nigeria’s metering programme

The Manufacturers Association of Nigeria is raising concerns over the impending displacement of local meter manufacturers and assemblers in Nigeria amid the government's implementation of the World Bank funded National Mass Metering Programme. The program aims to supply 1.2 million smart energy meters, but local manufacturers fear they may be excluded in favor of foreign firms. In a recent interview with CNBC Africa, Segun Ajayi-Kadir, the Director General of the Association, highlighted the challenges faced by local players in meeting the financial and technical requirements set forth by the programme. Ajayi-Kadir pointed out that the local manufacturers have invested heavily in setting up meter production facilities based on government guidelines and initiatives to expand local content in the sector. He emphasized that excluding these local players from the procurement process goes against the government's program of patronizing locally manufactured products, raising concerns about the fairness and justice of the situation. One of the key issues raised by Ajayi-Kadir is the significant financial requirement imposed by the National Mass Metering Programme, which local manufacturers find challenging to meet. He questioned whether these financial and technical specifications are necessary for the effective delivery of meters or if they are skewed in favor of foreign suppliers who have more financial capability and established relationships with the distribution companies. Despite demonstrating their capabilities during the initial phase of the program by delivering over 600,000 working meters, local manufacturers feel sidelined in the second phase. Ajayi-Kadir stressed that the stringent conditions set forth by the programme are unnecessary and disadvantageous to local players. The Manufacturers Association of Nigeria has initiated talks with relevant government agencies, including discussions with the presidency, to address the concerns and seek intervention. The association is advocating for the liberalization of the downstream distribution aspect of the programme, urging the government to prioritize the patronage of locally made products in line with Executive Order 003. In addition to the exclusion of local manufacturers, the issue of estimated billings and potential tariff hikes also looms large in the discussion. Ajayi-Kadir highlighted the importance of accurate metering in eliminating estimated billings and ensuring households and businesses are billed only for the electricity they consume. He emphasized that any planned tariff hike should be halted, considering the current economic challenges facing Nigeria. The link between metering capacity, fair billing, and overall efficiency in the electricity sector is crucial. Ajayi-Kadir underscored the need for just payment practices to enhance the effectiveness and competence of distribution companies. By enabling consumers to control their consumption and pay for actual usage, metering plays a vital role in improving operational efficiency and customer satisfaction. With ongoing efforts to engage with government stakeholders and present their case, local manufacturers in Nigeria are determined to secure a level playing field in the National Mass Metering Programme. The outcome of these discussions and potential policy adjustments could have significant implications for the future of the country's meter manufacturing industry and the broader electricity sector.