The Minister of Power, Adebayo Adelabu, has announced the ministry's intention to create a law that will encourage the growth of local content in the power sector.
Adelabu made this announcement during his official visit to Momas Electricity Meters Manufacturing Company Limited in the Ibafo area of Ogun State on Friday.
He stated that President Bola Tinubu’s government aims to assist local manufacturers in reducing their reliance on foreign goods.
“We will support and promote local industries, those individuals who have taken the risk to invest in production. We should also provide them with access to affordable funds and long-term debt capital,
“Finally, we will buy their products when they produce. This will enable sustainability in their activities.
“In the power sector, we choose to have a significant local content in our projects and contracts. We are working on a bill to mandate local content for the power sector, similar to the oil and gas sector. This is crucial for sustaining local producers,” he said.
Adelabu, who emphasized that ministers in Tinubu’s cabinet are always in the field, recognized the challenges the country is facing due to rising inflation, removal of fuel subsidy, exchange rate harmonization, and consistent devaluation of the naira, leading to higher prices of goods and services.
“But we are not disheartened. Without pain, there is no gain,” he noted
The minister explained that 90 per cent of Nigeria’s inflation is due to import dependency.
“We are heavily reliant on imports. When the naira loses value, importing becomes costly, leading to rising prices. To prevent this, we need to become self-reliant,” Adelabu commented.
He expressed regret that “The population, which should have been an advantage, has become a liability.
“Our population should be advantageous, providing a market for locally produced goods. Instead, we rely on imports from countries with established industries and a workforce, despite having the market here.
He revealed that it was one of President Tinubu's main objectives to promote import substitution by supporting local industries to reduce the inflow of foreign goods.
“Once we can meet local demand and have surplus, we can export and start earning foreign exchange,” he added.
Earlier, the Chairman of MEMMCOL, Kola Balogun, urged the Federal Government to create a conducive environment for local manufacturers to thrive.
Balogun mentioned that the company, established around 30 years ago, has been making prepaid meters locally, creating the products from the beginning.
He urged the government to make the most of local capability "to simplify our influx of various things entering the country for us to progress."
