Suspend World Bank Loan On Mass Metering, Senate Tells TCN, NERC

The Senate has called on the Transmission Company of Nigeria (TCN) and the Nigerian Electricity Regulatory Commission (NERC) to immediately suspend the World Bank funded NMMP Phase 2 in order to undertake a comprehensive review of the procurement criteria to prioritize local manufacturing and assembling.

The Senate also mandated TCN and NERC to look towards the Central Bank of Nigeria (CBN) intervention funds or engage the African Export-Import Bank (AFREXIM).

This followed a motion sponsored by Sen Victor Umeh, Anambra Central on the urgent need to protect local meter manufacturers in the ongoing national mass metering programme of the federal government.

According to the Senate, things should be done inline with the local content and backward integration policy that catalyzes local capacity building, employment generation and economic growth for Nigeria.

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The Senate, accordingly, “urged the executive to immediately suspend the TCN Tender for World Bank funded NMMP Phase 2 in order to undertake comprehensive Review of the Procurement Criteria to prioritize local Manufacturing and Assembling in line with Local Content and Backward Integration Policy that catalyzes local capacity building, employment generation and economic growth for Nigeria and “also urge the Transmission Company of Nigeria and other stakeholders to negotiate and engage the African Export-Import Bank (AFREXIM) and the African Development Bank (AfDB) for alternative Loan if World Bank loan conditions do not favour local economic growth at this critical time of massive unemployment and devaluation of Naira.

“Also, the Senate resolved that local manufacturers should be given intervention through the Central Bank of Nigeria (CBN) intervention fund.”

Umeh had said that the Duty of Industry Procurement Regulators in every developing Economy, first and foremost, is to protect its Local Manufacturers and would only try to augment importation of goods and services where there is a clear-cut gap between local production and consumption.

“Also notes that the members of Association of Meter Manufacturers of Nigeria (AMMON) are capable of producing world standard smart meters, hence the Transmission Company of Nigeria (TCN) and the Nigerian Electricity Regulatory Commission (NERC) under Phase 1 of the Mass Metering Programme of the Federal Government, issued the Association, after a competitive Bidding Process a “Letter of No Objection” to award 4 million meters in 2022.

“Aware that the Central Bank of Nigeria also in 2020 undertook to fund the National Mass Metering Programme (NMMP) Phase 1 but after 8 months of Awards to Local Manufacturers, withdrew funding, which affected the workability of the Programme; Also aware that the World Bank has approved a loan of One Hundred and Fifty-Five Million US Dollars only ($155,000.00) for the National Mass Metering Programme;

“Worried that the Ongoing World Bank funded NMMP Phase 2 seeks to promote foreign companies participation against competent and prequalified Local Meter Manufacturers will ultimately result in the loss of jobs and revenue. A deliberate policy to prioritize Local Manufacturing will catalyze job creation and economic growth; Informed that the Transmission Company of Nigeria (ICN) on behalf of the World Bank closed Bidding Advertisement on July 11, 2023 and further extended it to July 25, 2023 for the supply and installation of 1.2 million Smart Meters to the 11 Distribution Companies in Nigeria;

“Cognizant that the Bidding Criteria put in place which can only be satisfied by foreign companies have totally marginalized and eliminated the participation of the 35 Local Meter Manufacturers; Also Cognizant that the current Bidding Criteria do not only negate some policy initiatives that will facilitate the establishment of a Local Metering Industrial Base with its impact in terms of generating employment opportunities for Nigerians, it also enables loss of revenue to the nation by granting these foreign companies additional concession of a Custom duty waiver of 45%;

“Alarmed that if the bidding process continues as it is, the outcome would be disastrous to members of the Association of Meter Manufacturers of Nigeria who have invested billions of Naira in the Sector and currently employs 10,000 workers directly and more than 30,000 workers indirectly; and “concerned that if the Federal Government and other Stakeholders do not make urgent Intervention, the Ongoing World Bank funded NMMP Phase 2 would ultimately encourage foreign company participation, loss of jobs and funds, to the detriment of Local Manufacturers and causing economic retrogression,” Umeh added.