An indigenous electricity meter manufacturing firm, MOMAS Electricity Meters Manufacturing Company Limited (MEMMCOL), has called for the Federal Government’s intervention in that sector to encourage local production and sustenance of such companies.
Its Chairman, Mr Kola Balogun, who spoke in Lagos, appealed to the government to stop the importation of meters to boost patronage of local manufactured meters. He also sought financial support from the government not just for his company but all meter manufacturing companies in the country to enable the stay in business and create jobs for Nigerians. He also noted that such support would enhance the growth of small and medium scale enterprises.
He explained the imperativeness of government’s intervention noting that the inability of local manufacturers to access fund poses a serious challenge to the manufacturing prospects of the country.
For instance, he noted that MEMMCOL, which is located at Ibafo, Ogun State, has invested over N3 billion on meter manufacturing equipments so as to enhance local production of various types of meters and electrical components and there isn’t appropriate patronage to help keep company well afloat. Government’s support would help local manufacturers improve on their production volumes and quality.
He said: “I feel it is important that Nigeria should stop importing electricity meters so that we can migrate from importing meters to manufacturing of meters of various types in Nigeria. In MEMMCOL alone, we have a production capacity of 50,000 to 100,000 meters monthly. This excludes productions by other companies in same business.”
Apart from inability to access funds from the government and money deposit banks to finance the business, inadequate electricity supply had also contributed negatively to the local production, he added. He said his company, which has over N3 billion investments in the sector, was largely supported by the Bank of Industry (BoI).
“Electricity is a major setback in our company. Since the factory was commissioned, there has not been public electricity supply to the factory. We are basically running on generator. This is one of the major complaints of some of our partners over the years because our equipment is very sensitive machine that requires uninterrupted power supply,” he added.
He, however, lauded the government for its effort in improving the power supply across the country but urged the government to extend the electricity supply to the factory.
Balogun said the company commenced production of prepaid meters in October 2012 but shut down in November due to government’s pronouncement of free prepaid meters to Nigerians. “Government’s earlier pronouncement that supply of prepaid metres should be free to PHCN customers affected our production. Our major challenge is that we have not seen a single order for prepaid meters from the sector since then.
“However, our company is planning to commence full production again because of the reversal of government’s pronouncement and hopefully, there will be a huge demand for meters,” he added.
He said the company initially had a workforce of over 600 but downsized to about 100 last year due to the PHCN’s inability to procure meters. “Our company has developed ultra modern call centres for Power Holding Company of Nigeria’s (PHCN’s) customers across the country to address customers’ complaints across the 11 PHCN distribution companies in Nigeria. This will give customers better service across the nation because it enables them interface with all the electricity distribution companies.
