The Electricity Meter Manufacturers Association of Nigeria (EMMAN) on Monday said that low patronage by electricity distribution companies posed serious threats to member’s business sustainability.
The Executive Secretary of EMMAN, Mr Muyideen Ibrahim, disclosed this in an interview with the News Agency of Nigeria (NAN) in Lagos.
Ibrahim said that only Ibadan, Eko and Abuja distribution companies patronised EMMAN members on a low demand, adding that most DISCOs complained of lack of funds.
According to him, most local meter manufacturers in Nigeria have retrenched lots of staff due to low demand from the Discos.
“The power firms are hiding their love to make money through estimated billings. The investors, who bought the assets of the Power Holding Company of Nigeria (PHCN), borrowed money to acquire these assets.
“They need to refinance the loans they got from banks. And the safer and easier way to do this is to make money, by collecting outrageous or crazy bills from customers overtly or covertly,’’ he said.
Ibrahim urged Federal Government to intervene in order to prevent metering industry from collapsing, adding that government should compel DISCOs to buy meters from local manufacturers since they are producing quality meters.
“Doing this means that the government is killing two birds with one stone. By this, the government is promoting local content initiatives, introduced to promote the growth of indigenous business operators, while at the same time, helping in conserving foreign exchange.
“This means that monies that are spent on importation of raw materials and finished goods, would be domicile in the country.
“ When we make do with what we have, we are saving the country from brain drain. The multiplier effects are industrial growth, technological advancement, unemployment generations and others,’’ NAN quote Ibrahim saying.
He advised Discos to stop importing meters, adding that they are developing the foreign countries at the expense of Nigeria.
The executive secretary said that importation affects the naira fluctuations and also leads to loss of jobs and social vices.
He said that if they patronise local manufacturers, there would be massive jobs and would contribute to the GDP in the long run.
Ibrahim said that the manufacturers has the capacity to produce 25,000 meters monthly, adding that five manufacturers currently produces 5,000 meters on monthly basis with ability to double production.
He said that foreign exchange fluctuations also contributes to meter production challenges, adding that dollar is extremely high and most of the raw material for meter production are not available in the country.
He said that all members of EMMAN run on generating sets due to erratic power supply which affects production processes.
It will recall that on June 8 the Minister of Power, Works and Housing, Mr Babatunde Fashola, advised Distribution Companies (DISCOs) to patronise local meter manufacturing companies in the country.
He gave the advice while inaugurating the Mass Meter Deployment programme in Kano.
The minister said such patronage was necessary to encourage the production of meters by the local manufacturing companies in the country and save foreign exchange.
“Patronising the local meter manufacturing companies is the way to diversify and save foreign exchange,” he said.
Fashola noted that the inauguration of the scheme in Kano was a clear indication that the Kano Electricity Distribution Company (KEDCO) was committed to ensuring effective service delivery.
He commended KEDCO for the initiative and urged other DISCOs to develop their own strategies for mass deployment of meters for the benefit of their customers.
