Local meter manufacturers in Nigeria are turning their attention to regional markets in Ghana, Benin, Niger, Chad, and Cameroon as they struggle to sustain their operations in the face of unfavorable policies. The move comes after the federal government’s failure to fully implement the local content initiative, which some operators claim has been undermined by the government’s preference for imported meters.
Reports indicate that investments by local meter producers are now under threat following the government’s decision to award contracts to three Chinese firms for the supply of 1.43 million meters. Critics argue that this decision violates the local content policy meant to promote domestic production. According to Kola Balogun, chairman of Momas Electricity Meter Manufacturing Company Limited (MEMMCOL), the Nigerian Electricity Regulatory Commission (NERC) has failed to protect local manufacturers by prioritizing imports over locally produced meters.
In August 2024, the Bureau of Public Enterprises (BPE) signed an agreement with three Chinese companies — Ningbo Sanxing Medical & Electric Co. Ltd, Ningbo Sanxing Smart Electric Co. Ltd, and XJ Group Corporation — to supply the meters. While the Nigerian government praises the initiative as a solution to the nation’s meter deficit, local producers warn that it threatens jobs and local industries. Balogun emphasized that the local industry has the capacity to meet Nigeria’s meter demand and that supporting local production could reduce capital flight, preserve jobs, and contribute to economic growth.
Power sector analyst Osita Odafi pointed out that Nigeria currently has over 50 local meter assemblers, but only about 46% of the country’s electricity customers are metered. With over 7 million households still lacking meters, Odafi highlighted the need for stronger support for domestic production to close the metering gap and boost economic resilience.
