ON Wednesday, August 13, 2015, a significant milestone was achieved in the Nigerian power sector with the presentation of samples of locally manufactured metres to President Muhammadu Buhari by the Permanent Secretary, Federal Ministry of Power, Ambassador Godknows Ighali.

Technocrats in the power sector reckon that with this development of locally made meters, there would be a significant growth in the Nigerian economy and also a reduction in the level of unemployment in the country.

The questions that currently linger in the minds of industry players are: now that the made in Nigeria meters have been presented to the President what is next? How would this presentation translate to patronage of the locally made meters? The different players in the entire value chain of the power sector have a role to play to make this very critical sector of the economy work for the good of all. For instance, the Central Bank of Nigeria (CBN) has a big role to play in the interest of the economy by helping to ensure that all electricity distribution companies patronise local meters manufacturers.

The CBN could contribute by limiting forex allocation to electricity distribution companies to import these prepaid electricity meters which our indigenous manufacturers are able to produce with a far better hybrid quality when compared to some of the imported ones that are usually dumped in our market.

Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) also owes the nation the crucial duty to ensure that made in Nigeria meters meet international standards by ensuring periodic random testing of meters produced by these indigenous manufacturers through its agency, Electricity Management Service (EMS). This role of EMS is so important and must be diligently carried out to put the indigenous manufacturers on their toes not to compromise the quality of locally made meters.

Furthermore, how do we ensure that more of this bold step i.e. presentation of local meters to President Muhammadu Buhari undertaken by the Federal Ministry of Power is encouraged in the power sector to fully enjoy the holistic value chain of the sector and also tackle one of the new administration’s core economic agenda, unemployment.

However, there is still a strong need for all stakeholders concerned especially the supervising ministry (Ministry of Power) to take a second look at the functions of the DISCOs because it appears that the DISCOs have been saddled with the responsibility of purchasing meters and also distribution of bills (including estimated bills) to power consumers, whereas their primary function is to ensure that power gets to the transformer.

Perhaps, this is why they have not taken time to notice and provide solutions to the issue of general bad shape of transformers in the country which is indeed a major factor affecting energy delivery to the end consumers. This is because the power transmission companies have enough electricity to supply to the consumers through the DISCOs but most transformers currently in place cannot withstand the amount of power or energy required by the consumers.
Maybe, they may have to take a second look at the entire privatisation of the power sector in its entirety and limit the role of the DISCOs to end at the distribution transformer point and now allow for the emergence of electricity marketing companies.

By so doing, the DISCOs that are hitherto seen overwhelmed by combining the two responsibilities of distribution and marketing would now be more focused and single minded in their objective in order to deliver energy to consumers by supplying power from the transmission company to the transformer point, from which the marketing company would take it and distribute to the consumers.

As a matter of fact, the proposed electricity marketing companies would be expected to be autonomous and a separate business entity not to be owned either in part or full by the DISCOs. It must be noted that combining the role of marketing and distribution for DISCOs as we currently have is an anomaly that is limiting the benefits or the expected benefits of the privatisation of the power sector.

If the proposition of the creation of electricity marketing companies is implemented, it would result in efficient distribution of power to the distribution point by the DISCOs. The marketing company on their own would ensure consumers are properly metered, appropriately billed and the power sector would move forward.

However, one can only hope that these indigenous meters manufacturers would make this patronage count, especially in the area of job creation and employment opportunities for Nigerian youths. The manufacturers must be ready to show in tangible and clear terms how this move has increased the employment rate in the country.

It is also important to note whether these local manufacturers would increase capacity through expansion drive that meets local demand for smart meters. This is very crucial because it would be counterproductive to stop importation of metes if the indigenous meters’ manufacturers cannot meet the local needs.

Again, more investors should be encouraged to venture into electricity meters manufacturing to promote healthy competition which will be in the general interest of the country in terms of quality and product pricing.

Finally, it is pertinent to also look into the opportunity of creating another value chain within the power sector to encourage indigenous manufacturers to start manufacturing of transformers in Nigeria so that very soon we can also present a made-in-Nigeria transformer to the President and take the full potential of the power sector reform.

• Abimbola wrote in from Lagos.