Effective metering will tackle liquidity challenge, Power Minister assures 

The Minister of Power, Mr Saleh Mamman, has assured Nigerians that effective metering will tackle the challenges of liquidity and energy theft in the power sector.

Speaking at a facility tour of Momas Electricity Meters Manufacturing Company (MEMMCOL) factory in Ogun State, at the weekend, the Minister said metering is one of the things affecting ineffective power distribution network and he said on resumption of office as power minister, he took it as a priority and believes it will boost electricity market liquidity and sustainability.

“We have to produce meters to get more money for the sector. We will get more money from distribution companies to pay generation companies and the only way to justify that is by metering all consumers. That is why I am here to see the in-country capacity that we have.

“I don’t believe in listening to stories that is why I’m here to inspect the factory of Momas Meter Manufacturing Company. Today, I am convinced that we have a Nigerian company that has the capacity and capability to meet the metering gap in the country.

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”This has now encouraged me to also tell our local companies that have the capacity to produce meters that we will support them with what is expected and required to build more in-country capacity,” he said.

The minister, however, commended the management of MEMMCOL for setting up the gigantic and magnificent factory that has the capacity to meet Meter Assets Providers (MAPs) specification in the country.

“I am very much impressed with the local content-driven initiatives by MOMAS company on the meter manufacturing company, to see a Nigerian firm producing meters up to 1,000 units per day is very impressive,” he said.

In his address, Mr Kola Balogun, the Group Chairman of MEMMCOL Group, said that his company has the capacity to produce above 50,000 smart meters per month if given the support by government and adequate patronage from distribution companies.

Balogun commended the minister for inspecting his meter manufacturing company and assured the minister that the company will sustain quality and standard that meet international best standards.

”I want to tell Nigerians that we have the capacity and the capability to deliver metering solutions to bridge metering gaps in the country. One of the major challenges is funding because Discos need recapitalisation, adequate funding to buy sufficient meters for the consumers,” he said.

On MAPs, Balogun said due to liquidity and insufficient fund, in terms of single digit from the financial institutions, funding poses a serious challenge to metering requirements which are the reasons for what the meter providers are facing.

He appealed to the Federal Government to ensure that local content is entrenched as a policy in the power sector industry for meter licensee to comply with the local content policy.

He urged government upscale the 30 per cent local content act on metering to 70 per cent to give local meter manufacturers the much-needed opportunities to attract investors.