The Senate on Thursday suspended the Transmission Company of Nigeria (TCN) from obtaining a loan facility of $155 million from the World Bank for mass production of local meters.
The upper legislative chamber resolved to suspend application of the loan because its agreement promotes foreign manufacturers against competent and qualified local meter manufacturers in the country.
The suspension of the loan application was a sequel to a Sotion moved by Victor Umeh (LP, Anambra Central) at the plenary presided over by the Senate President, Godswill Akpabio.
Mr Umeh, while presenting the motion, said if the loan is obtained, local manufacturers in the country will lose their jobs, and the Nigerian government will also lose revenue that ought to be contributing to the development of the country’s economy.
When the motion was thrown open for debate, many of the senators supported the suspension of the loan.
The senate president subsequently approved that the loan processing should be suspended, and the transmission company should negotiate with African Export-Import Bank (AFREXIM) and the African Development Bank (AFDB) for an alternative loan to achieve mass metering production.
Mr Umeh, while giving a background of the meter production project, explained that the project was first funded by CBN in 2020, but the fund was withdrawn after eight months which affected the success of the production.
He claimed that the proposed plan of the TCN was to produce four million meters in 2022 that will be distributed across the country to electricity consumers.
The senator explained further that after CBN withdrew the fund, the TCN approached the World Bank for a $155 million loan facility to continue the metering production project.
He noted that the World Bank has already approved the loan for the national mass metering production.
Mr Umeh, in his argument, noted that 70 per cent of the content of the meter could be sourced locally by meter manufacturers in the country.
“Seventy per cent content of the meter can be sourced locally. The electronic parts are also available. We cannot allow them to continue sabotaging the economy.
“We are not against the loan. We are talking about the application of the loan, it is to make our local manufacturers lose out, and the opportunity will go to foreign manufacturers. If we can produce 70 per cent of what we use in Nigeria, we will be a giant among countries of the world,” he said.
Mr Umeh said the meters, if manufactured by local manufacturers, will be more effective than handling by foreign manufacturers.
“I took time to review the loan. If we don’t take time, this country will break up. The bidding criteria do not accommodate the local manufacturers but include the foreign manufacturers.
discovered that the meters Nigerians are producing are stronger than what they produce in foreign countries. The Nigeria meter manufacturing association can do better. We don’t produce anything in this country, we depend on importation, and if we continue, we will never balance,” he added.
“The TCN cannot go on with procurement of the loan. The money will be used to develop the country. We are ready for the trouble. Corruption has eaten this country because of personal interest. They are sabotaging the efforts of local manufacturers.”
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