Home Development Meter Manufacturers Reject Chinese Contracts, Urge FG to Back Local Industry

Meter Manufacturers Reject Chinese Contracts, Urge FG to Back Local Industry

by Radarr Africa
Meter Manufacturers Reject Chinese Contracts, Urge FG to Back Local Industry

The Association of Meter Manufacturers of Nigeria (AMMON) has raised strong objections to the continued award of meter supply contracts to Chinese companies, despite Nigeria’s robust local production capacity.

In a statement issued by its President, Durosola Omogbengun, AMMON criticised the recent $100 million contract awarded by the Transmission Company of Nigeria (TCN) to two Chinese firms for the supply of 1.25 million electricity meters, describing the arrangement as a clear neglect of the local industry and a betrayal of President Bola Ahmed Tinubu’s ‘Nigeria First Policy’.

Omogbengun expressed concern over the slow execution of the Chinese contract, disclosing that only 75,000 meters have been delivered so far, almost two years into the project. He said the delay has contributed to the persistent metering gap, which continues to affect liquidity in the power sector.

“Since the commencement of this transaction, only 75,000 meters out of 1.25 million have been delivered. Those meters are still uninstalled, defeating the aim of resolving the liquidity crisis — which we, AMMON, are addressing daily without incentives or government support,” Omogbengun said.

He revealed that despite the poor outcome of the ongoing foreign procurement, TCN is set to award another contract funded by the World Bank for the supply of 1.55 million meters — again excluding local manufacturers.

“This approach will further undermine the local metering industry and contribute to capital flight. It threatens to kill local manufacturing,” he warned.

The group, made up of 42 certified meter manufacturers and assemblers, urged the federal government to implement the Nigeria First Policy in full, especially under the Distribution Sector Recovery Programme and Presidential Metering Initiative. AMMON called for National Competitive Bidding as the default procurement method to guarantee local content participation.

Omogbengun commended President Tinubu for prioritising locally manufactured goods in public procurement policies and for mandating technology transfer when foreign vendors are involved. He reiterated AMMON’s readiness to support these policies and deliver quality results.

“With the enactment of the Nigeria First Policy, AMMON remains ready and equipped to provide meters for the country. Our members have a combined installed capacity of six million meters annually and currently hold over 250,000 compliant meters ready for immediate deployment,” he said.

Citing past performance, he stated that AMMON delivered 1.7 million meters under the Meter Asset Provider (MAP) scheme in 12 months in 2021, significantly outperforming foreign firms.

“Our records show that AMMON/MAP has delivered quicker and in multiples of any foreign procurement project undertaken. While the World Bank project delivered only 75,000 meters in 20 months, we delivered 1.7 million meters in one year,” he said.

AMMON further noted that the metering sector directly employs 10,000 people and supports an additional 30,000 indirectly. Between 2020 and 2024, local firms have installed 2.6 million meters, including 850,000 units under the National Mass Metering Programme.

The association stressed that Nigeria’s metering industry is vital to national development and has the potential to evolve from semi-manufacturing to full-scale production, positioning Nigeria as a regional hub for meter exports under the African Continental Free Trade Area (AfCFTA).

“We urge the government to adopt a metering strategy that prioritises local capacity. This will not only ensure faster delivery but also reduce unemployment, encourage industrial growth, and prevent capital flight,” the statement said.

Concluding, AMMON reaffirmed its support for President Tinubu’s Renewed Hope Agenda, pledging continued dedication to the industrial development of the country. “Your leadership inspires confidence and renews hope in Nigeria’s industrial future,” Omogbengun stated.

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