*BPE assures manufacturers of Executive Orders to patronize Nigerian products

Onwuamaeze dike

Lagos Chamber of Commerce and Industry (LCCI) has appealed to the Federal Government to consider privatizing the national power grid as part of measures to address the persistent electricity problem and the recurrent collapse of the national power grid.

LCCI made the appeal yesterday in a public statement titled “Finding a permanent solution to the frequent collapse of the national power grid”. The call came as acting general director Public Procurement Office (BPP), Mr Olusegun Omotolainsured Manufacturers Association of Nigeria (MAN) said the agency will strengthen the implementation of the federal government’s Executive Orders 003 and 005 to improve the promotion of locally produced goods.

LCCI expressed concern in the statement about the frequent collapse of the national power grid, the country’s only source of hydroelectric power.

The Director General of the LCCI, Dr. Chinyere Almonawho made the statement said this year alone: Nigeria had registered eight power outages, three of them within a week.

Almona added that the deteriorating performance of the national grid was a concern for the business community. She explained: “What lessons have we learned from past grid collapses and recovery efforts? After numerous failures, the national network operators should now have identified the causes and found permanent solutions.

“It is concerning that there appears to be no clear understanding of these causes or lessons learned from the recovery processes. “After approximately 105 outages in 10 years, energy stakeholders should know what causes these recurring outages and how to prevent them. “We are concerned that there appears to be a lack of such understanding among energy sector regulators.”

LCCI also found that the Nigeria Electricity Regulatory Commission (NERC), in its report for the second quarter of 2024, said that meter installation by electricity distribution companies declined by up to 60.86 percent in the second quarter of 2024.

According to the report, only 49,188 meters were installed during this period, a decrease of 60.86 percent from the 125,664 meters in the first quarter.

The statement said: “We call on the government to stay on track with reforms in the power sector, particularly the previously set metering targets.” We call on NERC to create an enabling regulatory environment for the Electricity Distribution Companies (DisCos), to utilize a mix of all meter funding frameworks outlined in the Meter Asset Provider (MAP) 2021 and the National Mass Metering Program (NMMP). LCCI added: “When we look at the opportunities presented by a robust national network, we see the benefits for businesses Nigeria in terms of reducing production costs, thereby making Nigerian products more competitive in international markets.

“A stable power supply can also help us earn more foreign currency by supplying electricity to neighboring countries.

“NERC’s 2023 annual report showed that international bilateral customers from countries such as Niger, BeninAnd Togohas made a total payment of $50.36 million to the Nigerian Electricity Supply Industry (NESI) for electricity distribution in 2023.”

The Chamber appreciated the ongoing efforts and reforms in the energy sector and expected the government to continue to focus on implementing them quickly.

Omotola, however, assured Nigerian manufacturers that BPP would strengthen the implementation of relevant executive orders aimed at increasing the patronage of Made in Nigeria Ministries, Departments and Agencies (MDAs) products.

Omotola gave the assurance yesterday Lagos while delivering the keynote address at the opening ceremony of the three-day “Made in Nigeria Exhibition”.

The exhibition was part of the activities on the occasion of the 52nd annual general meeting of MAN under the motto “The imperative of one Intentional development the Nigerian manufacturing sector at a time of economic downturn.”

The BPP Director General said: “I am here to introduce something new Public Procurement Office that is ready and willing to collaborate with key stakeholders like Federal Ministry of Industrytrade and investment; Standards Organization of Nigeria (SON); Nigerian Chambers of Commerce AssociationIndustry, Mining and Agriculture (NACCIMA); and others in the manufacturing sector, to develop targeted policies, a roadmap, and an implementation framework, in line with the President, that will enable sustainable, inclusive economic growth, boost agriculture to achieve food security, and accelerate diversification through industrialization and manufacturing Bola Ahmed Tinubu “Government’s renewed hope agenda.”

Omotola added: “Public procurement, the process through which government entities purchase goods, works and services, is a powerful tool that can shape our economy.”

“In Nigeria, where the government spends heavily, public procurement policies can significantly influence the direction of our industrial development.

“The impact of well-crafted procurement policies on local manufacturing cannot be overstated and the BPP is already taking action to protect and support our manufacturing sector through its proposal to amend the current public procurement law, in line with the Renewed Hope agenda (PPA) 2007.”

The change was intended to stimulate economic growth and create jobs.

Omotola explained Nigeria took important steps in the right direction in 2017 when the federal government issued Executive Orders 003 and 005 to support local content in public procurement.

The implementing regulations required all federal government MDAs to give preference to local manufacturers of goods and service providers in their procurement processes.

The BPP Director General said the initiatives represent a strong foundation to build on to fully realize the potential of public procurement to promote local production.

He noted that while the current 40 percent requirement for local content is a good start, “we should aim higher.”

“I propose to gradually increase this percentage over the next five years, with the ultimate goal of reaching 60 to 70 percent for key sectors.”

According to him, “the time for half measures and piecemeal solutions is over.”

“We need a comprehensive, targeted approach to developing our manufacturing sector. This approach must be based on sound policies, strategic investments and an unwavering commitment from both the public and private sectors.”

This was stated by the President of MAN, Mr. Francis Meshioye, in his welcome address Nigeria should consciously aim in its approach to accelerate the development of domestic production.

Meshioye said: “We must not forget that our governments have made efforts to increase the patronage of made-inNigeria Products. The promulgation of Executive Orders 003 and 005 reiterates the government’s commitment to facilitating domestic production and promoting local products.

“However, the lack of effective implementation remains a major and unfortunate problem.

“We therefore call on all ministries, departments and agencies to fully comply with the orders in accordance with the further instructions of His Excellency the President.” Bola Tinubua few months ago at the Nigerian Manufacturers Summit at State House.”

He said MAN would continue to support measures that would provide greater support for made-inNigeria products and the protection of local industries.

“Together we can create an economy in which made-inNigeria Products are the preferred choice in Nigeria and in demand in the international market,” said Meshioye.

An exhibitor and national sales manager of HMA Medicals LimitedMister. Charles M. AkakaDIESTAG said improved implementation of the executive orders has increased sales of syringes, needles, intravenous fluids and pharmaceutical products manufactured by the company.