The electrical and electronics sector of the Manufacturing Association of Nigeria (MAN) has cautioned the new power distribution companies (DISCOS) to avoid towing the approach of PHCN in importing components that can be locally manufactured in the country.
The sector called for concerted efforts by government and all stakeholders to enable them locally manufacture components and parts needed for the stabilisation and irreversible transformation of the power sector, in support of the NIPPs, DISCOs, the Transmission Company of Nigeria and the IPPs.
The call was made by the group’s chairman, Engr. Reginald Ike Odiah, at a presentation on the sectoral’s group’s experience at the 46th AGM of MAN Ikeja branch.
He said that there must be plans to encourage local manufacturing of basic and supportive components like meters, cables, fi ttings, transformers, control gears, feeder pillars, and switches among others, stressing that these are components and parts that are needed on a continuous basis by the sector to ensure stability and growth.
“The NIPP contractors should patronise local manufacturers for products that can be sourced locally; the same applies to the IPP and the Transmission Company of Nigeria. The DISCOs should not like their predecessors (PHCN) import electrical products and components that we have or could develop capacity to produce locally,” he said.
He said that the electricalelectronics sectoral group has always raised the alarm that the sector is at the verge of collapse owing to a number of factors which he enumerated to include the granting of waivers and duty-free import licenses to individuals for the importation of products which members have capacity to meet local demand, or develop production capacity where necessary.
The electricity power reform act of 2005 currently embarked upon by the present administration, presents a great opportunity for our sectoral group to effectively retool in support of the massive development in this sector as a result of the reform agenda.
He explained that to achieve this however, there must be adequate assurance and guarantee of the market by government.
“Though waiver has been reportedly suspended since 2012 via presidential orders as a result of misuse, however, if properly applied and managed by government it could help build the economy and create employment, reduce the infl ux of substandard goods and encourage local production,” he said.
According to him, in the past the process of waiver granting has always been shrouded in secrecy; conceived and executed by a few, thereby creating a feel of economic sabotage and eroding our fundamental rights as citizens to know and make inputs on issues and touch on our lives and businesses.”
He said that now that the issuance of waivers has become sector based it will help to ensure that all concerned within the sector benefi t thereby eliminating individual benefi ts as has been the case in the past.
In his remarks, the President of MAN, Kola Jamodu charged manufacturers to be alive to their responsibilities and remain prominent in their different sectors in order to maximize government’s policy on incentives and waivers which is now sector specifi c and no longer accommodates individual companies or manufacturers.
Information from National Mirror was used in this report.