The Federal Government (FG) has pledged its commitment to patronising local meter manufacturers in boosting local content development and fostering growth in the industrial sector.
Mr Adebayo Adelabu, the Minister of Power, assured support for local manufacturers investing in domestic production during a working visit to MOMAS Electricity Meters Manufacturing Company Ltd. (MEMMCOL), Mowe, Ogun State.
Adelabu emphasised the importance of sustaining local producers through access to affordable funding and long-term capital.
He said, “We will also prioritise patronage, ensuring sustainability in their operations, aligning with President Bola Tinubu’s renewed agenda.
“It is a must to have significant local content in power sector’s projects and contracts.”
Adelabu highlighted plans to introduce legislation mandating local content in the power sector, just like the oil and gas industry, stressing the necessity of comprehensive plans for full backward integration and technical training.
The minister posited: “That is the only way local producers can be sustained.
“But, we need to start developing capacity in terms of investment infrastructure and also ensure mass production.
“Need to develop local capacity to avoid importation. We must have a comprehensive plan for full backward integration so that the locally manufactured products will be achieved.
“We have to start training our people in technical training.”
Adelabu outlined the Presidential Metering Initiatives’ target of installing two million to 2.5 million meters annually over the next five years.
According to him, initially, to address significant metering gaps, he stressed the need for collaborative efforts from all stakeholders.
Commending MOMAS for its contributions to bridging the metering gap, Adelabu stated, “MOMAS remains our proud local meter manufacturing company in Nigeria. Its investment in metering and other electrical equipment is top-notch.
“I visited the meters manufacturing company to see how they can be supported.
“It’s part of my visit to see how they can be supported through the meter expansion programme of the Ministry of Power.
“We know that Nigeria is a highly import-dependent country, this is one of the reasons our currency has lost value.
“lt is one of the intentions of the government to ensure we are back on the import substitution journey.
“The only way we can do this is to support local manufacturers, apart from support.
“We must also incentivise them by providing a conducive atmosphere that we make their production activities in terms of cost to be competitive.”
He acknowledged MOMAS’s substantial investment in metering infrastructure and emphasised the importance of creating a conducive environment for local manufacturers to thrive.
Impressed by MOMAS’s commitment to local content, Adelabu promised to engage with regulatory bodies to expedite meter acquisition plans, underscoring the urgency of addressing the widening metering gap.
He urged other Nigerian businesses to emulate MOMAS’s dedication to local content development, emphasising the government’s commitment to promoting self-reliance and reducing dependence on foreign goods.
“We must also incentivise them by providing a conducive atmosphere that we make their production activities in terms of cost to be more competitive,” Adelabu expressed.
The Minister explained that the Ministry was impressed with the huge investment in metering installations and metering accessories at MOMAS factory, saying, the Chairman is a patriotic Nigerian.
"I have seen the production process of meters and l am impressed with the local content of MOMAS.
"I never believed they had such facilities and technology know-how.
“Over 80 per cent of their production is done locally. This is commendable and impressive,” he said.
Adelabu promised to enter a discussion with the Nigerian Electricity Regulatory (NERC) on how to accelerate meter acquisition plans.
In response, Mr Kola Balogun, Chairman of MOMAS, expressed appreciation for the minister’s support and stressed the need for sustained government commitment to local industries.
Balogun highlighted MOMAS’s capability in meter manufacturing and called for increased government support to facilitate raw material procurement and potentially explore export opportunities.
He said that there is a need for more such commitments from the government to develop local capacity in the power sector.
"Because we can take advantage of the new African doctrine of exporting so that local manufacturers can export to other parts of African countries.
"We design meters from scratch and that capability is not in doubt because we complied with all the various standards that Nigeria has set and also global best practices in terms of design.
"All Discos are our partners, we also supply meters to Liberia, Sierra Leone and other African countries, but the volume Nigeria requires supersedes any volume in Africa.
"The local patronage is still very much needed to be able to meet the investments' threshold that we have done in the country today,” he said.
As the nation’s sole Original Equipment Manufacturer (OEM) in meter production, Balogun posited that MOMAS is poised to meet Nigeria’s metering requires while advocating for continued government patronage to support its investment in the country’s industrial development.
All rights reserved. This material and other digital volumes on this website, may not be reproduced, published, broadcast, rewritten, or redistributed in whole or in part without prior express written permission from THE NEWS ACCELERATOR NETWORK.
For advert placement, please contact thenewsacceleratornetwork@gmail.com or 08033599492. For news coverage or press releases, call 08022717838.
Post a Comment