•It is in the nation’s overall interest that indigenous meter firms are supported
We have made the case here several times and we will not get tired of doing so: we are simply urging that Nigerian firms producing electricity meters should not be allowed to die. Put plainly, they need the patronage of power firms and the support of the Federal Government to help them remain in business and thrive in Nigeria’s emerging huge power sector.
This reiteration arises from a recent outcry by the meter manufacturers that they lose money in billions due to various factors, chief of which is non-patronage by the electricity distribution companies (Discos).
According to recent report emanating from the Electricity Meters Manufacturing Association of Nigeria (EMMAN), their members face imminent loss of investments and indeed, extinction. Muideen Ibrahim, EMMAN’s executive secretary, captures his members’ situation thus: “Apart from losing to poor power supply, the firms have also lost to poor patronage caused by the refusal of the Discos to buy meters from them. When you go to the factories that are owned by the firms, you see unsold meters in large quantities. Who bears the cost? It is the manufacturers of meters.”
The matter between local meter manufacturers and the Discos has been protracted and indeed gets complicated by the day. Only a few weeks ago, Babatunde Raji Fashola, the minister overseeing the power sector sat in mediation with the parties concerned and harped on the importance of co-operation and collaboration between the Discos and EMMAN.
Apparently there was no agreement reached as both parties seem to travel their different ways. It is particularly worrisome that this is happening at this crucial period of power sector privatisation and on-going facilities upgrade.
For instance, there is pressure on the power firms to digitise their distribution processes. This has led to one of the Discos (Ikeja Electric Distribution Company) to embark on accelerated metering of homes and other consumer outlets. It recently announced a target of about 15,000 meters per month until every customer is metered.
Though there is no law compelling the Discos to source meters locally, and many of the Discos are actually procuring meters abroad, we urge that since some local capabilities had been established in the course of the power reform programme, it would be injurious to the nation’s economy to completely jettison these firms and allow them go under.
Though the Discos have made arguments about imported meters being better priced and of higher technical quality, we think these immediate advantages cannot outweigh the long term national interest of supporting the nation’s economy by helping the meter firms/sector to grow.
The benefits are innumerable. Jobs will be created, ancillary businesses will develop, a huge technological know-how will grow as an offshoot of the Discos. Electricity being of long-term viability, the meter firms will grow into long-sustained and viable component makers, to the point of producing for export to African countries in the future.
Fashola had urged both parties to collaborate and “think out of the box.” We understand that admonition to mean that the meter firms could merge with the Discos as subsidiaries in other to take full advantage of the fast growing power dynamics. This indeed requires a meeting of minds and the aligning of broad-based and long-term strategic objectives from both sides.
The meter arm of the new power value chain is huge and portends a long-term salutary effect on the economy. We must be careful to nurture it as a matter of strategic long-term policy. The country seems quite adept at shipping out her hard-earned foreign exchange at every turn.
Also noteworthy is the fact that the foreign currency component of importing meters is enormous and may be difficult to come by in the long run in the face of dwindling oil earnings.
India for many decades made her citizens to use vehicles made in that country, warts and all. Today, India’s auto industry has vastly improved as a result of that policy. We can do same with Nigerian-made meters.