LAGOS, AUGUST 10, 2016 – The Electricity Meter Manufacturers Association of Nigeria (EMMAN) on Wednesday lamented over the high rate of foreign exchange and the difficulty in accessing it for the importation of vital manufacturing components.EMMAN’s Executive Secretary, Mr Muyideen Ibrahim, said in Lagos that most manufacturers could not produce regularly due to the shortage of foreign exchange.
He decried the recent benchmark interest rate hike by the Monetary Policy Committee of the Central Bank of Nigeria (CBN) from 12 per cent to 14 per cent.
Ibrahim said that the development would further increase the rate at which commercial banks lend to the meter manufacturers.
According to him, the challenges of accessing foreign exchange are really biting harder on the local manufacturers.
“We cannot produce as and when due.
“Forex is not readily available because manufacturers cannot be going to the black market to buy at almost N400 and above, to a dollar.
“As we speak, over N50 billion worth of investment from all the manufacturers is just wasting away, as it were,’’ he said.
The EMMAN scribe said that aside from forex, poor power supply had been a major problem facing the manufacturers, adding that most members depended almost completely on generators.
“You can imagine the impact of all these challenges on the manufacturers’ cost of production.
“This is making local meter manufacturers unable to compete favourably with their foreign counterparts, especially those from China.
“The difference between China and Nigeria is that the Chinese government supports its manufacturers, because they have a good policy framework that is actually working.
“That is why some of the Chinese companies are saying, ‘We will give some of the Discos meters with one year moratorium, before we start collecting money.
“No Nigerian meter manufacturer can do that,’’ he said.
Ibrahim said that no fewer than five members produced at least 5,000 meters monthly; adding that lack of patronage from the distribution companies had affected their production.
He said that low patronage from Discos had forced many local meter manufacturers to downsize, adding that their ability to service their loans was being threatened.
Ibrahim said that government should give the manufacturers concession with regard to foreign exchange.
He suggested that a special intervention fund at a single digit interest rate was necessary, to enable them to compete with their foreign counterparts.
According to the official, this will bring about massive job creation, transfer of technology and contribution to the Gross Domestic Product.
“Government should urgently find way to liberalise the metering arm of the power sector, because there is no enabling law that says it is only the Discos that have the right to buy meters.
“Individuals should be able to buy their meters themselves, and take them to the Discos for them to be keyed into the systems before installing them,” brahim said.
Similarly, Mr Kola Balogun, Chairman, Momas Electricity Meters Manufacturing Limited (MEMMCOL) urged the Federal Government to support more indigenous meter-manufacturing companies in the country.
Balogun said that indigenous companies had more to offer the nation than their foreign counterparts.
He said that he was inspired by the need to make Nigeria a country that is technologically advanced to meet its own technological needs; that was why he set up the company.
The MEMMCOL chief said that Nigeria could no longer be dependent on other countries for our technological requirements.
He said that the situation would improve through a systematic approach, and strong belief in the ability of Nigerians to develop and create value.
Balogun said that the firm had developed a world class standard range of products, working together to provide electricity metering solutions, using the latest technologies in design and production.
