AMMN Kicks As TCN Awards Chinese Firms Over N160bn Contracts

The New Diplomat
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By Kolawole Ojebisi

The Association of Metre Manufacturers of Nigeria (AMMN) has expressed his displeasure over the decision of the Transmission Company of Nigeria (TCN) to snub local manufacturers and award contracts worth over N160 billion to two Chinese electricity metre manufacturing firms.

The president of AMMN, Durosola Omogbenigun, disclosed this in a statement on Monday.

This comes in the wake of the TCN’s acquisition of World Bank loan, which the company used in contracting the services of two Chinese companies to supply 1.25 million metres, worth over $100 million despite calls to patronise local manufacturers.

According to the statement, AMMON expressed concerns at the pace of the contracts’ execution by the Chinese companies, noting that only 75,000 metres out of 1.25 million have been delivered so far.

AMMON maintained that despite the questionable contract execution performance in the first procurement by TCN, the agency has planned to embark on another World Bank procurement of 1.55 million metres from a foreign company.

“Recently, TCN/PMU, the department in the Transmission Company of Nigeria, signed a contract with two Chinese companies to supply 1.25 million metres at the whopping cost of over 100 million USD using loans from the World Bank.

“Before the execution of this procurement process, we advised the FGN, then in the last administration, to allow local metre 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 metres out of 1.25 million metres have been delivered by these Chinese companies. Those metres 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.

“Despite the dismal failure of the first foreign procurement, TCN is going ahead with another World Bank procurement of 1.55 million metres, which will contribute in no small measure to killing local manufacturing,” the statement added.

According to the association, indigenous companies have 100 percent competence to deliver in electricity metre manufacturing.

To buttress its position, the association said local metre manufacturers produced N353.7 billion worth of electricity metres from 2021 to 2024,

“The contribution made by local metre manufacturers, especially from 2021 to 2024, was achieved at the cost of N353.7 billion (at today’s price for single- and three-phase metres and excluding the CBN-funded NMMP Project of 850,000 metres). This amount was financed by LMMA/MAPs locally,” it added.

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