The Senate has called on the Federal Government to immediately suspend the Transmission Company of Nigeria (TCN) Tender for World Bank-funded NMMP Phase 2.
The purpose of this suspension is to conduct a comprehensive review of the procurement criteria, with a focus on prioritizing local manufacturing and assembling.
The Senate aims to align with the Local Content and Backward Integration Policy to promote local capacity building, generate employment opportunities, and foster economic growth within Nigeria.
During the session, the Senate also resolved that local manufacturers, including TCN, should be granted access to Central Bank of Nigeria (CBN) Intervention Funds rather than relying on foreign loans for the National Mass Metering Programme.
The Upper Chamber further urged TCN and other stakeholders to explore alternatives with the African Export-Import Bank (AFREXIM) and the African Development Bank (AFDB) in case the World Bank loan conditions do not support local economic growth during this critical time of significant unemployment and Naira devaluation.
These resolutions were prompted by a motion titled “Urgent Need to Protect Local Meter Manufacturers in the ongoing National Mass Metering Programme of the Federal Government,” which was sponsored by Senator Victor Umeh of Anambra Central.
Senator Umeh stressed the importance of safeguarding local manufacturers and providing opportunities for them to thrive.
He highlighted that the Association of Meter Manufacturers of Nigeria (AMMON) has the capability to produce world-standard smart meters.
Under Phase 1 of the Mass Metering Programme, TCN and the Nigerian Electricity Regulatory Commission (NERC) had previously awarded four million meters to the Association after a competitive bidding process.
However, the Central Bank of Nigeria withdrew funding for the National Mass Metering Programme after eight months of supporting local manufacturers in 2020.
Consequently, the ongoing World Bank funded NMMP Phase 2 appears to promote foreign companies’ participation, potentially leading to job losses and revenue depletion.
The current bidding criteria have marginalized and excluded the participation of 35 local meter manufacturers.
Senators expressed concern that without immediate intervention, the bidding process may cause significant negative impacts on local manufacturers, leading to economic retrogression.
To protect local industries, create jobs, and retain revenue within the country, the Senate is urging the Federal Government to prioritize local manufacturing and revise the procurement criteria accordingly.