Bottlenecks in Customs clearing process frustrate prepaid metering scheme
. Meter providers bemoan foreign exchange scarcity
By Abimbola Abdullahi
Bottlenecks in the clearing process of the Nigeria Customs Service (NCS) may have become a clog in the wheel of smooth distribution of prepaid meters under the National Mass Metering Programme (NMMP) scheme of the Federal Government.
The Meter Asset Providers (MAPs) in a communiqué made available to SlyeNews the end of its meeting in Lagos, said the power sector currently suffers from huge metering gap; noting that closing the metering gap would improve revenue collection, transparency, payment discipline, and improve customer satisfaction.
The meter providers commended the Federal Government for the various interventions to close the metering gap such as the Meter Asset Provider (MAP) regulations and the implementation of the National Mass Metering Programme (NMMP).
The group blamed Customs clearing bottlenecks, implementation of the 35 per cent levy waiver granted by the President on fully built prepaid meters and improvements to the industry structure for accelerated prepaid meter deployment.
About 17 meter providers at the meeting recommended the removal of bottlenecks in the Customs clearing process, urging the NCS to create dedicated desks/teams at the various ports to fast track the clearing of prepaid meters and components from the ports to improve on delivery timelines.
“Further, it is crucial that Fed Min of Finance and Customs harmonise and provide clarity on HS codes for uniform assessment as relates to meters, meters parts, components and accessories.
“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. The list of all NERC approved MAPs benefitting from the levy waiver should be made available by NERC/FMF to the Customs to circulate to their commands, thus removing the requirement from MAPs to individually apply to NERC each time.
“The timeframe for presidential waiver should be further extended to December 2022,” the group stated.
They highlighted other key challenges to smooth distribution of prepaid meters to include: fixed meter pricing in a regime of depreciating foreign exchange rates and unavailability of foreign exchange from CBN.
MAPs also noted the disruptions in global supply chain resulting from the COVID-19 pandemic, with an attendant increase in international prices of raw materials and components required in the manufacture and assembly of prepaid meters.
The group however recommended a price review, noting that an upward review of the current price of prepaid meter by NERC is important, in view of rising inflation, continued upward movement of foreign exchange rates, associated increases in customs costs, increase in 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 manufacture of prepaid meters.
MAPs noted that there would be a corresponding downward review of meter prices when there is a downward movement in foreign exchange rates and other cost factors.
It however urged the CBN to guarantee access to foreign exchange to Local Meter Manufacturers and Assemblers for the procurement of parts and accessories (Completely Knocked Down (CKD) or Semi Knocked Down (SKD) parts) including equipment for meter manufacturing/production as well as expansion of factory infrastructure.
Other recommendations include: “Combined Implementation of MAP and NMMP Programmes: The MAP scheme is critical to the closing of the metering gap and should operate alongside the implementation of the NMMP. MAPs are crucial to the attainment of the mass metering roll-out having invested, built, and trained critical manpower and logistics for installation and management of prepaid meters.
“Nigerian Electricity Management Services Agency (NEMSA) should drive a review of material requirements for the production of meter and metering components and accessories such as meter boxes, relays, etc. This will facilitate the utilisation of available local materials to increase local input in the deployment of meters and reduce foreign currency requirements.
“Combined Stakeholders’ Meeting: That NERC should urgently convene a roundtable meeting of all stakeholders in the metering sector consisting of the Federal Ministry of Power, Office of the Vice President, CBN, Federal Ministry of Finance, Budget and National Planning, Federal Ministry of Industry, Trade and Investment, Customs, NEMSA, DisCos and MAP/Meter Manufacturers & Assemblers to engage on the key issues and above recommendations.” It stated.
