By Adewale Sanyaolu
The Federal Government says it is currently shopping for N300 billion to procure 12.5 prepaid meters.
Minister of Power, Mr. Adebayo Adelabu, stated this at the weekend during a working visit to Momas Electricity Meters Manufacturing Company Limited (MEMMCOL) in Ogun State.
The move, according to the Minister, is to close the over seven million metering gap over the next five years.
He explained that the government intends to raise that fund through a N75-billion seed capital to be provided by President Bola Tinubu’s administration, along with additional debt capital injections from the Nigeria Sovereign Investment Authority (NSIA).
Adelabu stated that in line with President Tinubu’s Renewed Hope Agenda, the government was targeting to provide about 2.5 million prepaid meters every year to close the nation’s metering gap.
This, he said, would help the government in the promotion of import substitution policy of locally-made products in the power sector and encourage backward integration in the areas of technical training.
He equally expressed the current administration’s commitment to support local original equipment manufacturers (OEMs) by working on a bill that would promote local content for the power sector.
“We have a Presidential Metering Initiative that has the target of installing a minimum of two million to 2.5 million meters every year for the next five years, for us to close the huge metering gap that we currently have in the power sector.
“Even if we cannot close it 100 per cent as there will be new connections, we have to reduce it significantly and the government cannot do it alone. We have to do it jointly with all parties because we all contributed to the decay in the sector and we must also contribute to reversing the decay”, the minister stated.
He maintained that the initiatives would encourage investors to risk their equity and debt capital to establish local industries.
“In the power sector, it is our choice to have significant local content in our projects and our contracts. We are trying to work on a bill now that will legislate local content for the power sector just like we have in our oil and gas. That is the only way we can sustain local producers. So, that is the reason I am here.”
Recall that the Federal Government in 2020 under the National Mass Metering Programme (NMMP) which seeks to increase metering rate, eliminate arbitrary estimated billing, strengthen the local meter manufacturing sector, job creation and reduction of collections losses injected a seed capital of N200 billion
Under Phase-0 of the NMMP, the sum of N59.280 billion was set aside for financing the installation of 1 million meters but 962,832 meters through twenty-three (23) Meter Asset Providers was achieved. The Phase 1 of the project however dipped in a glitch over funding constraints.
The Minister emphasised the need for Nigeria to reduce import dependency for national development and economic growth.
Adelabu lamented that 90 per cent of the current hardship in Nigeria was caused by the country’s import dependence, stressing the importance of self- reliance and supporting local manufacturers.
The minister further stated that with Nigeria’s large population, there should be employment generation, establishment of companies and local manufacturing.
Adelabu echoed President Bola Tinubu administration commitment to import substitution by supporting local manufacturers, adding that that there was the need to support and give incentives to local manufacturers and support them.
The minister commended the company and the quality of its products, urging them to do more in order to increase its capacity.
The CEO of MEMMCOL, Mr. Kola Balogun, expressed happiness with the minister’s commitment to encourage the company.
He called for the support of indigenous manufacturers and expressed optimism on bridging Nigeria’s metering gap with local capacity and capability.