Headlines

AMMON laments over forex-driven prices

Forex

By Omotolani Oseni

The Association of Meter Manufacturers of Nigeria (AMMON), has warned that the foreign exchange (forex) fluctuations have impacted negatively on the operations in the sector.

The association, which expressed concern over the challenges posed by foreign exchange fluctuations, said this is also impacting on the continuous supply of meters to the Nigerian Electricity Supply Industry (NESI).

“As the demand for meters continues to grow, the association emphasises the urgent need for regulatory measures to address the issue of a fixed meter price, especially when all input costs are affected by increasing inflation and foreign exchange movements. This attention is urgently required to ensure the seamless provision of meters across the nation,” AMMON said in a statement at the weekend.

The body, in the statement, therefore, advocated collaboration between regulatory bodies and the Nigerian Electricity Management Services Agency (NEMSA) to develop cost-effective meter specifications tailored to NESI requirements. By working closely with NEMSA, the association believes that it can contribute to the development of standards that promote affordability without compromising quality and reliability.

READ ALSO: Life & Style

The body further noted that giving consideration to its position on the forex situation as it affects meter manufacturing would not only facilitate the sustainability of the meter manufacturing industry but also ensure that end-users have access to reliable and affordable electricity meters.

AMMON, therefore, called on regulatory authorities to consider the liberalisation of meter prices, by allowing manufacturers to adapt to market dynamics to be able to maintain a steady supply of meters.

“If this action is taken, it will ensure the continued and uninterrupted supply of meters to meet the nation’s growing demand for reliable electricity services barring the short gap already experienced.

Besides, it is our believe that these proposed measures will contribute to a more robust and resilient electricity metering ecosystem,” the Association said, reassuring that it remains committed to supporting the nation’s power sector.

The Association, while restating its commitment to further engaging with relevant stakeholders to implement these recommendations and address the challenges currently faced by the meter manufacturing industry in the country, emphasised on the urgent need for decisive action to address the foreign exchange crisis, inflation, and instability in the metering industry, highlighting the imminent risk of a severe shortage of meters for installation within the next two weeks.

It appealed to government to consider the liberalisation of meter prices in order to enable manufacturers adapt to market dynamics and maintain a steady supply of meters, adding that cost-effective meter specifications are also essential. AMMON also commended the Minister of Power, Adebayo Adelabu, for the recent establishment of the Presidential Committee on Mass Metering, describing it as a “bold step towards addressing the pressing challenges in the metering sector.”

The association said, “If urgent action is not taken to prioritise and expedite measures to address the impending shortage, which is occasioned by a three month and growing, supply chain gap by our estimates.

About the author

DailyTimesNGR

Leave a Comment