$155m WB Loan: Senate seeks protection for local meter manufacturers

<p>The Senate, on Thursday, sought protection for local metre manufacturers following the approved US$155 Million World Bank loan for the National Mass Metering Programme, NMMP of the federal government.</p>, <p>The resolution was a sequel to a motion to that effect sponsored by Senator Victor Umeh (LP Anambra Central) during plenary.</p>, <p>Presenting the motion, Senator Umeh noted that it’s the duty of industry procurement regulators in every developing economy to protect the 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.”</p>, <p>“The Central Bank of Nigeria, also 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.”</p>, <p>Senator Umeh also revealed that the World Bank has approved a US$155 Million p loan for the National Mass Metering Programme.</p>, <p>He was, however, worried that “the ongoing World Bank funded NMMP Phase 2 seeks to promote foreign companies participation against competent and pre-qualified local meter manufacturers will ultimately result in the loss of jobs and revenue”, adding that “a deliberate policy to prioritize local manufacturing will catalyse job creation and economic growth.”</p>, <p>The lawmaker informed that the TCN, on behalf of the World Bank, closed the 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 the country.</p>, <p>He said the bidding criteria, which could only be satisfied by foreign companies, have totally marginalized and eliminated the participation of the 35 local meter manufacturers, adding that if allowed to continue would be disastrous to AMMON members, who have invested billions of naira in the sector and currently employs 10,000 direct workers and over 30,000 indirect others.