We know that Meter Asset Provider (MAP) regulation is designed to close the metering gap that exists in the Nigerian electricity supply industry, how effective do you think this regulation will be?
The effectiveness cannot be defined now, but we are hoping that the execution will be done with much passion than was displayed when the regulation was conceived. If the energy channeled towards the conceptualization of the regulation is sustained during the implementation stage, I think we will have a hitch free meter deployment for the power consumers and at the end of the day, the consumers will be totally liberated from the so called estimated billing otherwise known as ‘crazy billing’.
The regulation stipulates that asset recovery will span 10-15 years. It means meter providers will recoup the cost of the meter within the next 10-15 years. How prepared are you in terms of liquidity challenge because most of our banks do not grant facility that span such tenor?
The major issue concerning investment in metering that will span 15 years has to be substituted with a foreign investment. We need major financial institution like Central Bank of Nigeria, World Bank, African Development Bank and others to come into that investment profile to guarantee long term stability. The most important is that we must have sufficient head room in terms of asset base or credit worthiness of each of us that wants to apply as a MAP and be able to enjoy long term credit line from such financial institutions. I know that this is possible. However, the good thing about this MAP policy is that, there are two ways to go about it.
Consumers can as well pay for the prepaid meter willingly, and as well they can opt not to pay but spread the payment over a period of time.
The fact that there is liberty for consumers to pay and install them with prepaid meter instantly will provide liberation for consumers from depending on estimated billing. This will be a great achievement for the government and the consumers.
The regulation takes effect from April 3, 2018 and the distribution companies must patronise the indigenous meter manufacturers. Have you submitted any proposal to any of the discos and what is the value in the proposals?
We are dusting our documents right now and getting set for the bidding window to open. We want to make sure all the documents and requirements are met and put in a proper perspective. Most of us need consultants to be able to package the proposals in a professional way.
I’m sure before the deadline, we would have been making the submissions to the discos including the Nigerian Electricity Regulatory Commission (NERC) as well, because we need to submit to them too.
The discos have 120 days to meter all their customers; don’t you think this has put them in a situation in which they need you more than you need them?
I don’t see the discos approaching a prospective client or a MAP. We are the ones that will go to the discos because we need them more than they need us. So, we have been trying to liaise with them in terms of signing a Memorandum of Understanding (MoU) and the application process. So, we have been going to them.
As an investor with great passion for the country and the power sector development, do you really think that the Nigeria Electricity Supply Industry (NESI) is ready for this change?
Yes. The present administration, especially the Honourable Minister of Power, Works and Housing, Mr Babatunde Raji Fashola, has brought a lot of change in the entire power sector value chain. More businesses have been opened up. Now, there is a willing buyer-willing seller scheme; there is off-grid scheme and all these different opportunities were aimed to open up the sector market for whosoever wants to invest in power generation and distribution business. If you generate and distribute electricity, it means you will need meter to capture your transactions, and this is an opportunity for us to improve and develop local content. As you can see, we are improving because we are now selling to lots of private investors that are now generating energy and distributing to some cluster areas. That is why the business keeps opening. As I am talking to you now, we have more than 300 people doing meter installation in different locations across the country. They are in places like Aba, Ikeja, Kano and other places. These are gradually opening up more business opportunities and we hope that MAP will cap it up by opening up the entire opportunities that are supposed to follow privatisation of the power sector industry. Please, give it to the minister, he has tried so much to make sure the business is fully opened up for more opportunities.
You mentioned lots of good initiatives by the minister. However, what are your expectations from the government and other stakeholders to ensure there is more liquidity in the sector and a win-win situation for both power investors and the final consumers?
The government and its agencies need to ensure there is more discipline in the entire value chain. We need to get optimal performance from all involved. There is need for more government intervention. The Central Bank of Nigeria (CBN) can formulate a policy that will guarantee liquidity in the sector if we look at its vital role in the economy and its capital intensive nature. They can provide special facility for indigenous meter manufacturers.
The government also needs to improve the network so that technical losses will be reduced to a minimum. They also need to expand the network and provide power to all the rural communities that are connected right now. They need to fund the rural electrification.
Power is capital intensive and the government must not cut itself entirely from the sector. It cannot be left solely in the hands of the private investors.
As a power sector investor, what has been your motivation to hang on because you have been investing in the power sector before it was finally privatised?
You must define your goal and aspirations in life. It is either you fall for your country or not. If your country takes precedence over any other thing in your life, it means whatever you have you want to put it in your country so that you can be a proud citizen of the country.
For me, whatever amount I invest in my country is in fulfillment of my aspiration for the country. I would rather invest here than take the money out of the country. If you look at the business terrain in Nigeria, it doesn’t encourage anybody to set up industry because lots of obstacles are inherent in the system.
Thank God the government introduced a policy on ‘Ease of Doing Business in Nigeria’. This must be implemented even at the grassroots stage. These policies must be implemented because saying it on the television and other media outlets do not mean that it is being implemented at the grassroots. Government must start thinking of putting a feedback mechanism in place so that anyone facing one challenge or the other can report this to the government. The greatest passion that makes me hang on is that I believe in my country and believe we are the one that will make the country great and not foreigners.
There were claims in some quarters especially during post privatization, that indigenous meter manufacturers do not have the capacity to produce prepaid meters but rely on importation and later assemble in Nigeria, what is your reaction to this?
The capacity we had post privatisation was not fully utilized not to talk about now. We have sufficient capacity then and now to address the needs of the discos. I have been in the industry for more than 25 years now, we have never installed one million meters in Nigeria in one year, but we have the capacity. What we need is adequate funding and time to deliver just as it is being done for our foreign counterparts. They need to test us by giving us 100 per cent funding.
What is the main challenge confronting your operations in Nigeria?
Honestly, it is adequate funding. The next thing is manpower development. Our graduates need to be trained and retrained. We need to train more artisans; we need to ensure that we enforce attitudinal discipline. Our young citizens must jettison the idea of getting rich quickly because this may undermine the act of doing things very well.
We need to re-echo the importance of doing things right. The government should also focus on developing the technological sector and iron and steel that will grow the country.
How cordial is your relationship with your host community?
It has been very cordial. We encourage the schools to focus on science subjects. We are renovating their toilets, buildings and plan to build laboratories for them. We realised that training of young ones is very key in nation building. We are also advocating discipline among them and we hope to sustain these for long.
and then