Meter producers seek access to forex for business survival
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Nigerian meter manufacturers under the auspices of Meter Asset Providers (MAP) have emphasised the need for the Central Bank of Nigeria (CBN) to facilitate access to foreign exchange to enable progressive continuity of their businesses.
The manufacturers, who aired their demand in a communique issued at the end of a recent meeting in Lagos, said having access to foreign exchange would enable them to procure parts and accessories including Completely Knocked Down (CKD) or Semi Knocked Down (SKD) parts and other basic equipment for meter production as well as expansion of factory infrastructure.
Highlighting their demands during the meeting, the manufacturers called for upward review of the current price of prepaid meter by Nigeria Electricity Regulatory Commission (NERC) in view of rising inflation, continued upward movement of foreign exchange rates, associated increases in customs costs, rising container freight costs, and the disruptions in the international supply chain, leading to a global increase in the prices of raw materials and components for the production of prepaid meters.
Speaking on the way forward to assuage these challenges, they urged the Nigerian Customs Services (NCS) to create dedicated desks and teams at the various ports to fast track the clearing of prepaid meters and components from the ports to improve on delivery timelines.
They suggested that the Federal Ministry of Finance and Customs harmonise, and provide clarity on HS codes for uniform assessment to meters, metering components and related accessories.
The meter manufacturers also tasked the Nigerian Electricity Management Services Agency (NEMSA) to drive a review of material requirements for the production of meter, metering components and accessories as well as a change in the modalities for the implementation of the presidential waiver of the 35 per cent levy on fully built prepaid meters and extension up to December 2022.