SENATE TELLS FG TO HALT TCN’S ELECTRICITY METER TENDER
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The Senate has requested that the Federal Government urgently halt the Transmission Company of Nigeria (TCN) Tender for the World Bank-funded NMMP Phase 2 project.
The Senate claims that this is necessary in order to conduct a thorough review of the procurement criteria in order to give local manufacturing and assembly priority in accordance with the local content and backward integration policy, which spurs economic growth for Nigeria while also fostering local capacity building.
The Senate also decided that instead of relying on foreign financing for the National Mass Metering Program, local manufacturers (the TCN) should be given the chance to access CBN Intervention Funds.
The Upper Chamber has also urged the TCN and other interested parties to engage in negotiations with and seek loans from the African Export-Import Bank (AFREXIM) and the African Development Bank (AFDB) “for alternative loans if World Bank loan conditions do not favor local economic growth at this crucial time of massive unemployment and Naira devaluation,” according to the statement.
A motion headed “Urgent Need to Protect Local Meter Manufacturers in the Ongoing National Mass Metering Program of the Federal Government” prompted yesterday’s Senate resolutions.
Senator Victor Umeh, LP, of Anambra Central, served as its sponsor.
Presenting the motion, Senator Umeh said that the Senate should note 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.”
According to him, 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 four million meters in 2022.”
Senator Umeh said that Senate was aware that the “Central Bank of Nigeria in 2020 undertook to fund the National Mass Metering Programme (NMMP) Phase 1 but after eight months of awards to local manufacturers, withdrew funding, which affected the workability of the Programme.”
He said that the Senate is “also aware that the World Bank has approved a loan of One Hundred and Fifty-Five Million US Dollars only ($155,000,000.00) for the National Mass Metering Programme;
“Umeh said, that the Senate is “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 (TCN) 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.”
When the prayers were submitted to a voice vote by Senate President Godswill Akpabio, the senators supported the motion and agreed that the prayers should be adopted by the Senate.
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