The Association of Meter Manufacturers of Nigeria has kicked against the award of meter contracts to Chinese firms despite in-country production capacity.

The association said it supports President Bola Tinubu’s ‘Nigeria First Policy’, which bans the importation of goods that can be produced locally.

According to AMMON, a group of 40 certified local meter manufacturers and assemblers, the policy will unlock the full potential of Nigerian industries.

In a statement, the President of AMMON, Durosola Omogbengun, appreciated Tinubu for the policy that prioritises locally manufactured goods in public procurement, mandating technology transfer and capacity-building when foreign options are pursued.

He expressed concerns about contracts with Chinese firms, citing slow delivery and high costs, urging the government to prioritise local manufacturing to stimulate industrial growth and job creation.

He stated that the Transmission Company of Nigeria once awarded a $100m contract to two Chinese firms to supply 1.25 million meters to the country, saying only 75,000 have been supplied so far.

He explained, “Recently, TCN-PMU, the department in the Transmission Company of Nigeria, signed a contract with two Chinese companies to supply 1.25 million meters at the whopping cost of over $100m, using loans from the World Bank.

“Before the execution of this procurement process, we advised the FG in the last administration to allow local meter manufacturers to participate in this transaction, and we had cogent reasons, but we were denied the opportunity.

“Since the commencement of this transaction, only 75,000 meters out of 1.25 million meters have been delivered by these Chinese companies. Those meters are still uninstalled, defeating the aim of resolving the liquidity crisis, which we, AMMON, are doing daily with no incentive or assistance from any quarters apart from our belief in our nation,” Omogbengun disclosed.

He added further that despite the “dismal failure of the first foreign procurement, TCN is going ahead with another World Bank procurement of 1.55 million metres”, saying this will contribute in no small measure to killing local manufacturing.

The association pledged to support the government’s efforts, stressing that its members can provide and install adequate meters for all consumers.

“With the enactment of the ‘Nigeria First Policy’, AMMON remains ready and equipped to showcase its ability to provide meters for the country, with our members currently boasting a combined installed capacity of six million meters annually and holding over 250,000 compliant meters in the country, ready for immediate deployment while continuing production to meet future demand.

“Our records show that AMMON/MAP has delivered quicker and in multiples of any foreign procurement project undertaken. The World Bank project delivered 75,000 metres out of 1.25 million metres in 20 months, while AMMON delivered 1.7 million metres in 12 months of 2021. We are still able to do that if similarly funded procurement is provided to AMMON.”

AMMON urged the government to fully operationalise the policy in the Distribution Sector Recovery Programme and Presidential Metering Initiative, adopting National Competitive Bidding as the default mechanism to ensure local content inclusion.

This, the association argued, will prevent capital flight, stimulate job creation, and accelerate backward integration.

According to AMMON, Nigeria’s metering industry is a cornerstone of national development, and with the right policy support, it can graduate from early-stage manufacturing to full manufacturing, thereby positioning Nigeria as a regional export hub under AfCFTA.

“Mr President, your leadership inspires confidence and renews hope in Nigeria’s industrial future. We pledge our full cooperation and continued dedication to the success of your administration’s Renewed Hope Agenda,” the association stated.

It highlighted that there are 42 local meter manufacturers in Nigeria, with a combined installed capacity of six million meters per annum, employing 10,000 workers directly and 30,000 indirectly.

It noted that local meter manufacturers have installed 2.6 million meters and 850,000 National Mass Metering Programme meters between 2020 and 2024.