Following the promulgation of the Meter Asset Provider (MAP) Regulation (Regulation No. NERC/R/112), which became effective on April 3, 2018 - and are expected to fast track a closure of the metering gap and encourage the development of independent and competitive meter services in the electricity industry - a meter manufacturing firm has appealed to the Central Bank of Nigeria (CBN) to create a line of credit for meter manufacturers to ensure the success of the scheme.
Mr Kola Balogun, Chairman, Momas Electricity Meter Manufacturing Company Ltd. (MEMMCOL), made the appeal in an interview with the News Agency of Nigeria in Lagos, stating that funding was a major challenge to the execution of the project for meter manufacturers.
Mr Balogun said: “Essentially, for this scheme to be successful, we will need between N10 to N20 billion for each of the manufacturers”.
“It’s a huge capital outlay, we urge the CBN to offer us the credit and also allow us to pay back in single digit interest rate”.
“The capacity is there but the funding that it required is the major constraint and that is the reason why we are appealing to CBN for intervention”.
Funding challenges may prove to be a major impediment to the success of the MAP Regulations and it is possible that the funding challenge faced by MEMMCOL may be connected to the liquidity challenge in the power sector and the revenue shortfalls that are experienced across the value chain.
Following the presidential elections in the country, the prospect of an increase in the electricity tariff to foster greater liquidity across the electricity value chain may become a necessity.
The contents of this news alert are meant for the general information of our clients and friends and do not amount to legal advice. All enquiries on the subject may be made to: firstname.lastname@example.org
Adepetun Caxton-Martins Agbor & Segun
9th Floor, St. Nicholas House, Catholic Mission Street, Lagos Island, Lagos State, Nigeria.
Telephone: +234 (1) 462 2094; 462 2480; 740 6743 Fax: +234 (1) 461 3140