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MAN Raises Alarm Over Potential Displacement of Local Meter Manufacturers in Power Sector

The association explained that the stiff financial requirements and technical specifications listed in the advertised material of the Transmission Company of Nigeria (TCN) are heavily biased against domestic manufacturers

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Following the implementation of the NMMP Phase IIT, a World Bank-funded initiative launched to supply 1.2 million smart meters, the Manufacturers Association of Nigeria (MAN) has cautioned the government on excluding local meter manufacturers and assemblers within the downstream power sector from the initiative.

This was disclosed in a statement made available to the media by MAN on Sunday.

The association explained that the stiff financial requirements and technical specifications listed in the advertised material of the Transmission Company of Nigeria (TCN) are heavily biased against domestic manufacturers as local manufacturers would struggle to meet those stated requirements.

This, MAN said is against contradicted the Central Bank of Nigeria’s guidelines for the National Mass Metering Programme.

MAN emphasizes that local manufacturers have made substantial investments in expanding their manufacturing capacities, as per the Federal Government’s backward integration policy and the introduction of the NMMP intervention.

They have also made efforts to train and nurture a highly skilled workforce capable of meeting the power sector’s demands, as envisioned in the Nigeria Electricity Supply Industry.

In the statement MAN warns that this situation could potentially lead to a replication of the distressing scenario witnessed in 2012 when local manufacturers were sidelined during the meter supply, resulting in the delivery of substandard meters by foreign companies awarded the contract, which were subsequently removed from the network.

Speaking on employment opportunity, MAN said “The position of the TCN that installation will provide employment opportunities to Nigerians will completely pale into insignificance when compared with a ratio of 1 to 10 jobs that will be created if local manufacturers are included in the scheme.”

Similarly, MAN argues that the intentional denial of opportunities for local manufacturers fails to acknowledge their impressive performance in the sector, including the successful deployment and installation of a total of 611,231 energy meters across the country between January 2019 and January 31, 2021.

The potential displacement of local meter manufacturers and assemblers in Nigeria’s power sector raises serious concerns about the future of the industry.

MAN calls on the government to reconsider the advertised financial requirements and technical specifications, ensuring that they align with the Central Bank of Nigeria’s guidelines.

By including local manufacturers in the supply of smart energy meters, the power sector can benefit from high-quality products while stimulating economic growth and generating a substantial number of job opportunities for the Nigerian workforce.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Energy

Malaysia’s CNG Ban Sparks Debate in Nigeria as Tinubu Pushes for CNG Adoption

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November 7, 2024

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Nigerians on and off social media have expressed concern following a recent decision by the Malaysian government to phase out Compressed Natural Gas (CNG) vehicles by July 2025.

While the Nigerian government continues to urge citizens to use CNG as a cleaner, cheaper fuel alternative to petrol, Anthony Loke, Malaysian Transport Minister, questioned the safety of CNG.

Announcing the ban, the Malaysian Minister highlighted the risk associated with CNG vehicles, especially after tanks exceeded their 15-year safe usage limit.

Minister Loke announced the ban while speaking at a press conference on Wednesday, November 6.

The Malaysian Minister disclosed that the ban will affect over 44,000 vehicles in Malaysia, including private cars, taxis, buses, and industrial machinery.

According to Loke, “These NGV tanks have a safe usage lifespan of approximately 15 years, and if they are not replaced, they become unsafe to use and may fail at any time.”

Loke announced that the phase-out will be in stages with the first being the halting of CNG sales by the state oil and gas corporation, Petroliam Nasional Berhad (Petronas) at its stations starting July 1, 2025.

The latest development has sparked numerous reactions as Nigerians criticized the Tinubu government for adopting CNG amid Malaysia’s phase-out.

Reacting to the development, @Gozie_mu wrote, “Nigeria to embrace it because we are the world’s dumping site.”

Another user, @iniekott, wrote: “Meanwhile, Nigerian rulers are putting CNG forward as a safe alternative to petrol.

“Note the clear-headed and tangible provisions made by the Malaysian government to help citizens with the transition.”

“Malaysia introduced CNG in the 1990s; now they are stopping it in 2024, while Bola and his supporters are asking Nigerians to change to CNG. APC is taking you 34 years backwards, but some of you’re defending it,” a user, PaschalNwosu5 wrote.

#SmartAtuadi criticized the government’s carelessness saying, “Nigeria seems determined to promote CNG without considering the safety implications that Malaysia has raised.”

Many others called on the government and government officials to lead by example by converting their vehicles to CNG before urging Nigerians to do so.

#Oserume1 commented, “If CNG was a good idea, Tinubu would have converted his official luxury Cadillac Escalade from petrol to CNG!”

@ekenezion said, “The president refused to convert his Escalade to CNG.”

@buzuzu7 opined, “I will only embrace this if all ministers and the presidency lead by example. I can’t be your guinea pig.”

The Nigerian government had since reacted to the CNG ban in Malaysia.

The Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, in his statement said the planned phase-out by the Malaysian government speaks more to the safety of LPG and not the safety of CNG.

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National Grid Collapses Twice in Two Days, Nigerians Express Frustration

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November 7, 2024

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Electricity

The Nigerian National Grid has announced yet another collapse, marking the second occurrence in just two days. 

The collapse of the Grid was made known by the Nigeria National Grid via its official page on the X platform. 

Following the Grid collapse, the Jos Electricity Distribution PLC, released an apology statement through the Head of Corporate Communications, Friday Elijah, stating that the grid has collapsed and assuring Nigerians that the power will be restored to normal soon 

“The current outage being experienced within our franchise States is a result of loss of power supply from the national grid. The loss of power supply from the national grid occurred this morning at about 1128 hours of today, Thursday, 7th November 2024, hence the loss of power supply on all our feeders,” the statement read. 

In a similar vein, Ikeja Electric PLC apologised to its customers regarding the grid that collapsed. It said, “Please be informed that we experienced a system outage today 07 November, 2024 at 11:29Hrs affecting supply within our network.” Adding that “Restoration of supply is ongoing in collaboration with our critical stakeholders.” 

It should be noted that the grid collapsed on Tuesday and shortly after power was restored, the grid reportedly collapsed again on Thursday.

Moreover, the recent Grid collapse has garnered eyebrows from netizens showing discontent towards the constant collapse of the electricity grid. 

One netizen with the user name @Aumarsafana2917 tweeted “Enough of all these stories now, we’re tired. We’ve heard them enough.” 

Another X user, @ikbank tweeted “ This has become so absurd. Are we now living in a nation where things no longer work? For crying out loud, how many things are we going to continuously experience this collapse (outage). Why can’t things work effectively with minimal stress. So tiring!” 

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Lagos State Govt Sources Alternative Power Supply as National Grid Collapse for Tenth Time In 9 Months

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November 7, 2024

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Electricity - Investors King

The persistent blackout caused by the collapse of the country’s National Grid has raised concerns by many especially business owners in the commercial city of Lagos who suffer heavy losses due to these inconsistencies.

In a move to address this growing challenge, the Lagos State Government under the leadership of Babajide Sanwo-Olu has begun to search for alternative power sources.

The initiative, spearheaded by the state’s Ministry of Energy and Mineral Resources (MEMR) in partnership with the Office of Public-Private Partnerships (OPPP) has opened the  bidding for independent power producers and energy solution companies to apply for the establishment of gas-fired power plants.

According to the Ministry on Wednesday, the initiative’s target is to generate up to 500MW of electricity across four designated hubs in the state.

The state lamented the grid’s inability to supply the needed amount of electricity needed to serve businesses in the city.

The government revealed that while Lagos requires over 6,000 MW of electricity, the existing DisCos supply less than 2,000 MW at peak periods.

The Ministry described the electricity shortage as a pressing challenge, hence the need for urgent and sustainable alternatives to supply energy.

“The state faces pressing energy challenges due to rapid urbanization and growth in economic activities. “There is an urgent need for sustainable alternatives to the supply of energy from the national grid, which is inadequate for the entire country,” the statement read in part.

Investors King reported that barely one month after the last restoration, the National Grid suffered another collapse on Tuesday.

This collapse, according to reports, marked the tenth collapse in 2024 alone.

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