LCCI Advises FG on Privatisation of National Grid, Metering of Electricity Consumers

Lagos Chamber of Commerce and Industry (LCCI) has appealed to the federal government to consider the privatisation of the national grid as part of measures to solve the perennial power problem and recurring collapse of the national grid.

LCCI made the appeal on Tuesday in a public statement titled, “Finding a Lasting Solution to the Frequent National Grid Collapse.”

The call came as acting Director-General of Bureau of Public Procurement (BPP), Mr. Olusegun Omotola, assured Manufacturers Association of Nigeria (MAN) that the agency would strengthen implementation of the federal government’s Executive Orders 003 and 005 in a bid to improve patronage of locally manufactured goods.

LCCI, in the statement, expressed concern over the frequent collapse of the national grid, the sole source of hydroelectric power supply nationwide.

Director General of LCCI, Dr. Chinyere Almona, who issued the statement, said this year alone, Nigeria had recorded eight grid failures, with three being recorded within a week.

Almona added that the worsening performance of the national grid was an issue of concern to the business community.

She stated, “What lessons have we learned from past grid collapses and restoration efforts? By now, after numerous failures, the national grid managers should have identified the root causes and found lasting solutions.

“It is concerning that there appears to be no clear understanding of these causes or lessons learned from the restoration processes.

“After about 105 collapses in 10 years, power sector stakeholders should know what drives these recurring failures and how to prevent them.

“We are troubled by the apparent lack of such understanding among regulators in the power sector.”

LCCI also observed that the Nigeria Electricity Regulatory Commission (NERC), in its second quarter 2024 report, revealed that meter installation by electricity distribution companies declined by as much as 60.86 per cent in the second quarter of 2024.

The report further said only 49,188 meters were installed during the period, making a 60.86 per cent decline from the 125,664 meters installed in the first quarter.

The statement said, “We urge the government to stay on course with the reforms in the power sector, especially the metering targets that were earlier set. We call on NERC to create a conducive regulatory environment for the Electricity Distribution Companies (DisCos) to utilise a mix of all the meter financing frameworks outlined in the 2021 Meter Asset Provider (MAP) and National Mass Metering Programme (NMMP).

LCCI added, “Looking at the opportunities available from a stable national grid, we see the benefits to businesses in Nigeria in terms of lowering the cost of production, which will also make Nigerian products more competitive in the international markets.

“A stable power supply can also make us earn more foreign exchange from supplying electricity to neighbouring countries.

“The 2023 Annual Report of NERC showed that international bilateral customers from countries, such as Niger, Benin, and Togo, made a total payment of $50.36 million to the Nigerian Electricity Supply Industry (NESI) for electricity distribution in 2023.”

The chamber acknowledged the ongoing efforts and reforms in the power sector and expected the government to stay focused on delivering on them quickly.

But Omotola assured Nigerian manufacturers that BPP would strengthen implementation of relevant executive orders meant to increase patronage of Made in Nigeria products by government ministries, departments and agencies (MDAs).

Omotola gave the assurance yesterday in Lagos while delivering the keynote address at the opening ceremony of a three-day “Made in Nigeria Exhibition”.

The exhibition was part of the activities marking the 52nd Annual General Meeting of MAN, with the theme, “The Imperative of an Intentional Development of the Nigerian Manufacturing Sector in an Era of Economic Downturn.”

The BPP director-general said, “I am here to present a new Bureau of Public Procurement that is willing and ready to collaborate with key stakeholders, such as the Federal Ministry of Industry, Trade and Investment; Standards Organisation of Nigeria (SON); Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA); and others in the manufacturing sector to develop intentional policies, roadmap and implementation framework that will deliver sustained inclusive economic growth, boost agriculture to achieve food security, and accelerate diversification through industrialisation and manufacturing in line with the President Bola Ahmed Tinubu administration’s Renewed Hope Agenda.”

Omotola added, “Public procurement, the process by which government entities acquire goods, works and services, is a powerful tool that can shape our economy.

“In Nigeria, where the government is a major spender, public procurement policies can significantly influence the direction of our industrial development.

“The impact of well-crafted procurement policies on local manufacturing cannot be overstated, and the BPP, in line with the Renewed Hope Agenda, is already taking measures to protect and support our manufacturing sector through its proposal for the amendment of the current Public Procurement Act (PPA) 2007.”

The amendment was meant to stimulate economic growth and create jobs.

Omotola stated that Nigeria took significant steps in the right direction in 2017, when the federal government issued Executive Orders 003 and 005 on Support for Local Content in Public Procurement.

The executive orders mandated all MDAs of the federal government to grant preference to local manufacturers of goods and service providers in their procurement processes.

The BPP director-general said the initiatives represented a strong foundation that must be built upon to fully realise the potential of public procurement in boosting local manufacturing.

He observed that while the current 40 per cent requirement for local content was a good start, “We should aim higher.

“I propose gradually increasing this percentage over the next five years, with the ultimate goal of reaching 60-70 per cent for key sectors.”

According to him, “The time for half-measures and piecemeal solutions has passed.

“We need a comprehensive, intentional approach to developing our manufacturing sector. This approach must be rooted in sound policies, strategic investments and unwavering commitment from both the public and private sectors.”

In his welcome address, President of MAN, Mr. Francis Meshioye, stated that Nigeria should be intentional in its approach to accelerating the development of domestic production.

Meshioye said, “We must not forget that our governments have made efforts to strengthen the patronage of Made-in-Nigeria products. The promulgation of Executive Orders 003 and 005 affirms the government’s commitment to facilitating domestic production, as well as patronage of local products.

“However, the absence of effective implementation remains a major and unfortunate concern.

“We, therefore, call on all government ministries, departments, and agencies to fully comply with the Orders as further directed by His Excellency, President Bola Tinubu, a few months ago at the Nigerian Manufacturers Summit in the State House.”

He said MAN would continue to advocate policies that promote increased patronage of Made-in-Nigeria products and the protection of local industries.

“Together, we can create an economy where Made-in-Nigeria products are the preferred choice in Nigeria and sought after in the international market,” Meshioye stated.

An exhibitor and National Sales Manager of HMA Medicals Limited, Mr. Charles M. Akaka, said improved implementation of the executive orders had increased the sale of syringe, needles, intravenous fluid, and pharmaceutical products manufactured by the company.

Dike Onwuamaeze

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