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    HomeUncategorizedTCN snubs local manufacturers, awards Chinese firms over N160bn contracts

    TCN snubs local manufacturers, awards Chinese firms over N160bn contracts

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    The Transmission Company of Nigeria (TCN) has awarded electricity meter supply contracts worth over ₦160 billion to two Chinese firms, sidelining local manufacturers, according to a statement released Monday by Durosola Omogbenigun, President of the Association of Metre Manufacturers of Nigeria (AMMON).

    The contracts, financed through a World Bank loan, involve the supply of 1.25 million meters valued at more than $100 million. This move comes despite repeated appeals for the government to prioritize local companies in such procurement processes.

    AMMON voiced concerns over the slow delivery rate by the Chinese contractors, revealing that only 75,000 meters have been supplied so far, with none installed, undermining efforts to address Nigeria’s energy sector liquidity issues.

    Despite this underwhelming performance, TCN is reportedly moving ahead with plans for another round of procurement from a foreign supplier for an additional 1.55 million meters.

    AMMON criticized TCN’s decision, warning that continued neglect of indigenous firms could severely harm Nigeria’s local manufacturing industry. The association insisted that Nigerian manufacturers possess full capacity to meet metering demands.

    From 2021 to 2024, AMMON members reportedly produced electricity meters worth ₦353.7 billion, excluding the Central Bank of Nigeria-funded National Mass Metering Programme (NMMP), which provided 850,000 meters.

    AMMON appealed to the administration of President Bola Ahmed Tinubu to prioritize local manufacturers, emphasizing the importance of supporting the domestic metering sector as a key element of national development. They stressed that with the right policies, Nigeria’s metering industry could evolve into a full-fledged manufacturing base and regional export hub under the African Continental Free Trade Area (AfCFTA).

    The association concluded by pledging support for President Tinubu’s “Renewed Hope Agenda” and called for enforcement of the newly approved “Nigeria First Policy” and the restriction on foreign goods procurement.

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