By Raphael Ekpang
The Nigerian Senate on Thursday urged 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 if World Bank Loan conditions do not favour the local economic growth at this critical time of massive unemployment and devaluation of naira
The Senate also urged the Federal Government 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 inline with Local Content and Backward Integration Policy that catalyses local capacity building, employment generation and economic growth for Nigeria.
This, followed a motion of urgent need to protect Local Meter Manufacturer in the ongoing National Mass Metering Program of the federal government sponsored by Senator Umeh Victor Chukwunonyelu representing Anambra South.
Sen. Umeh while moving the motion in the floor of the Senate said that the members of Association of Meter Manufacturers of Nigeria (AMMON) are capable of producing world standard smart meters, saying 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 four million meters in 2022.
According to him, the Central Bank of Nigeria also in 2020 undertook to fund the NMMP phase 1 but “after 8 months of awards to local manufacturers, withdrew funding, which affected the workability of the programme.
Senator Umeh noted that the world bank has approved a loan of $155million for the National Mass Metering Programme.
He spoke against the ongoing work Bank funded NMMP phase 2 which he said seeks to promote foreign companies participation against competent and pre-qualified local meter manufacturers will ultimately result in the loss of jobs revenue.
According to him, “A deliberate policy to prioritize local manufacturing will catalyse job creation and economic growth”.
“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 concession of a custom duty waiver of 45 percent”
Meanwhile, Sen. Umeh insisted 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 cause economic retrogression.
The motion, however, received overwhelming support from all senators at the plenary on Thursday.
