Local Content: FG to Buy Meters from Nigerian Manufacturers
In order to promote local content development and industrial sector growth, the Federal Government has committed to supporting local meter manufacturers. Mr Adebayo Adelabu, the Minister of Power, during a working visit to Momas Electricity Meters Manufacturing Company Ltd. (MEMMCOL), gave assurance to local manufacturers investing in domestic production in Mowe, Ogun State.
Adelabu emphasised the importance of sustaining local producers through access to affordable funding and long-term capital. He said, “We will also prioritise patronage, ensuring sustainability in their operations, aligning with President Bola Tinubu’s renewed agenda.
“It is a must to have significant local content in power sector’s projects and contracts.” He highlighted plans to introduce legislation mandating local content in the power sector, just like the oil and gas industry, stressing the necessity of comprehensive plans for full backward integration and technical training.
Adelabu said: “That is the only way local producers can be sustained. “But, we need to start developing capacity in terms of investment infrastructure and also ensure mass production.
“We need to develop local capacity to avoid importation. We must have a comprehensive plan for full backward integration, so that locally manufactured productst will be achieved.
“We need to start training our people in technical training.” The minister outlined the Presidential Metering Initiative’s target of installing two million to 2.5 million meters annually over the next five years.
According to him, initially to address significant metering gaps, he stressed the need for collaborative efforts from all stakeholders.
Commending MOMAS for its contributions to bridging the metering gap, Adelabu stated, “MOMAS remains our proud local meter manufacturing company in Nigeria. Its investment in metering and other electrical equipment is top-notch.
“I visited the meters manufacturing company to see how they can be supported. lt’s part of my visit to see how they can be supported through the meter expansion programme of the Ministry of Power.
“We know that Nigeria is a highly import-dependent country, this is one of the reasons our currency has lost value. It is one of the intentions of the government to ensure we are back on import substitution journey.
“The only way we can do this is to support local manufacturers, apart from support. Additionally, Adelabu stated, “We have to encourage them by creating an environment that makes their production activities cost-competitive.
He acknowledged MOMAS’s substantial investment in metering infrastructure and emphasised the importance of creating a conducive environment for local manufacturers to thrive.
Impressed by MOMAS’s commitment to local content, Adelabu promised to engage with regulatory bodies to expedite meter acquisition plans, underscoring the urgency of addressing the widening metering gap.
He urged other Nigerian businesses to emulate MOMAS’s dedication to local content development, emphasising the government’s commitment to promoting self-reliance and reducing dependence on foreign goods.
In response, Mr Kola Balogun, Chairman of MOMAS, expressed appreciation for the minister’s support and stressed the need for sustained government commitment to local industries.
Balogun highlighted MOMAS’s capability in meter manufacturing and called for increased government support to facilitate raw material procurement and potentially explore export opportunities.
As the nation’s sole Original Equipment Manufacturer (OEM) in meter production, he said that MOMAS is poised to meet Nigeria’s metering needs. He advocated for continued government patronage to support its investment in the country’s industrial development.
“We design meters from the ground up, and we are confident in our ability to do so because we adhere to all the different standards Nigeria has established as well as international best practices for design.
“Virtually all DisCos are our partners. We also supply meter to Liberia, Sierra Leone and other African countries, but the volume Nigeria needed supersedes any volume in Africa,” he said Balogun said: “The local patronage is still very much needed to be able meet up the investment threshold that we have achieved in the country today.
“We are the only Original Equipment Manufacturer (OEM) in the country. We design from scratch, which is an embedded conceptualisation in engineering. “That is the capability we have brought to the country. It also behoves on the government to leverage on this and patronise us,” Balogun added. #Local Content: FG to Buy Meters from Nigerian Manufacturers Benchmark Interest Rate on Nigerian Bonds Increases to 19.21%
