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Discos dump local meter makers for foreign firms

By on September 11, 2015

Some electricity distribution companies have finally dumped the idea of sourcing their meters from indigenous manufacturers, and have resorted to buying from foreign firms like Huawei, ZTE, and others, findings by our correspondent on Tuesday showed.

Some of the Nigerian meter manufacturers, to this end, described the move as a total disregard for the local content regulation currently in place in the country.

Findings by our correspondent also showed that electricity distribution companies like Ikeja, Jos, among others, were currently getting supplies from Huawei, ZTE and some other non-indigenous companies.

The regulations on National Content Development for the Power Sector 2014 was issued by the Nigerian Electricity Regulatory Commission on December 24, 2014 pursuant to the powers conferred on NERC to issue regulations and in furtherance of regulator’s object to ensure the optimal utilisation of resources for the provision of electricity services in Nigeria

The central theme of the regulations is to promote the deliberate utilisation of local human and material resources in the Nigerian electricity supply industry by all entities that hold licences to carry out   any regulated   activity, including electricity   generation   and   distribution.

The Executive Secretary, Electricity Meter Manufacturers Association of Nigeria, Mr. Muyideen Ibrahim, told our correspondent that owing to the fact that local players could manufacture electricity meters, discos had no business importing or buying from foreign firms.

He, therefore, stressed the need for NERC to revisit its regulations and ensure that the provisions are well enforced.

Two directors in a local meter company, who spoke on the conditions of anonymity, also confirmed to our correspondent that full approvals were not given before the meters were ordered from the foreign firms.

By NERC’s regulation, licensees are required to give first consideration to qualified Nigerian companies for the supply of goods, works and services and in the award of contracts, licensees are to give first consideration for goods made in Nigeria and services provided by Nigerian firms.

The use of the expression “first consideration”, in the absence of a definition, suggests that licensees may only consider foreign companies where there is a dearth of local capacity in relation to the supply of goods and services.

It, therefore, follows that suppliers and service providers seeking to be optimally positioned for the supply of goods and services in NESI must be Nigerian companies.

The Chairman, Momas Electricity Meters Manufacturing Company Limited, Mr. Kola Balogun, who also spoke to our correspondent, said some local manufacturers were accredited as approved suppliers of meters to discos in Nigeria.

He said there was the need for the Federal Government to take a position on the importation of meters into the country using the Central Bank of Nigeria and other government agencies.

Balogun confirmed that it was possible meters were being imported into the country without approval from relevant authorities.

But the spokesperson for Ikeja Electricity Distribution company, Mr. Pekun Adeyanju, told our correspondent that IKEDC was a law-abiding company, and would not do anything to disregard set regulations.

He confirmed the deal with Huawei, but stressed that the business was approved by NERC. He also maintained that Huawei was an approved NERC contractor as far as business in the Nigerian power sector was concerned.

 

 

[Punch]