Uche Cecil Izuora
The Association of Meter Manufacturers of Nigeria (AMMON) has called for review of Nigeria-China electricity meter deal which it said is not only killing local industry but has largely failed.
The Association reportedly that only 75,000 out of the 1.25 million meters contracted have been delivered more than a year after the deal was signed, with none installed so far.
The AMMON, accused the Federal Government of undermining local manufacturers in favour of foreign firms for multimillion-dollar contracts in the power sector.
The group said the Transmission Company of Nigeria recently awarded electricity meter contracts worth over $100m (approximately N160bn) to two Chinese companies despite the capacity of indigenous manufacturers to handle the project.
In a statement, the President of AMMON, Durosola Omogbenigun, said the deal was executed under a World Bank-funded programme, ignoring previous warnings from local manufacturers about the inefficiency and slow pace of such foreign procurements.
“Recently, TCN/PMU, the department in the Transmission Company of Nigeria, signed a contract with two Chinese companies to supply 1.25 million meters at the whopping cost of over $100m using loans from the World Bank.
“Before the execution of this procurement process, we advised the Federal Government, then in the last administration, to allow local meter manufacturers to participate in this transaction. We had cogent reasons, but we were denied the opportunity,” the statement read.
He said only 75,000 out of the 1.25 million meters contracted have been delivered more than a year after the deal was signed, with none installed so far.
“Those meters are still uninstalled, defeating the aim of resolving the liquidity crisis, which we, AMMON, are doing daily with no incentive or assistance apart from our belief in our nation,” he added.
Despite what AMMON described as the “dismal failure” of the current foreign contract, the TCN is reportedly proceeding with a second World Bank-backed procurement of another 1.55 million meters from foreign companies.
The association warned that the continued preference for foreign suppliers is hurting Nigeria’s local industry and undermining job creation and industrialisation goals.
“Since the commencement of this transaction, only 75,000 meters out of 1.25 million meters have been delivered by these Chinese companies. Those meters 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 meters, which will contribute in no small measure to killing local manufacturing,” AMMON stated.
The TCN spokesperson, Ndidi Mbah, is yet to respond to enquiries sent to her phone number for an official reaction.
AMMON, which represents 40 certified local meter manufacturers and assemblers, said indigenous companies have the full capacity to meet national meter demand.
It said its members currently boast an installed production capacity of six million meters annually, with over 250,000 compliant meters in stock and ready for immediate deployment.
The group also recalled that in 2021 alone, local manufacturers supplied 1.7 million meters within 12 months — a feat unmatched by any foreign firm.
“Our records show that AMMON/MAPs have delivered quicker and in multiples of any foreign procurement project. The World Bank project delivered only 75,000 meters in 20 months, while AMMON delivered 1.7 million meters in 12 months,” it noted.
Between 2020 and 2024, local manufacturers supplied a total of 2.6 million meters (excluding the 850,000 units under the CBN-funded National Mass Metering Programme), all financed locally at a cost of N353.7bn, according to AMMON.
The sector, it said, currently employs over 10,000 Nigerians directly and 30,000 indirectly. Despite its concerns, AMMON commended President Bola Tinubu for introducing the “Nigeria First Policy”, which prioritises local content in government procurement.
The policy, which was endorsed by the Federal Executive Council during its meeting on May 5, prioritises Nigerian manufacturers, service providers, and contractors in all procurement activities. It also mandates justification and Bureau of Public Procurement waivers before any foreign goods or services can be sourced.
The group called for the full operationalisation of the policy in power sector reforms, including the Nigeria Distribution Sector Recovery Programme and the Presidential Metering Initiative.
It also urged the government to adopt National Competitive Bidding as the default mechanism for procurement to reduce capital flight and promote backwards integration.
“Nigeria’s metering industry is a cornerstone of national development, and with the right policy support, it can graduate from early-stage assembly to full manufacturing, positioning Nigeria as a regional export hub under AfCFTA,” it said.
The AMMON also appreciated the Special Adviser to the President on Energy, Olu Verheijen, and the Minister of State for Industry, Senator Owan Enoh, for supporting the local content agenda.