Dollar scarcity: Local meter producers may close shop – Punch

Following the privatisation of the power sector in November 2013, local meter manufacturing firms were buoyed up by the huge metering gap in the country, and invested to ramp up their capacity with the expectation of meeting the demand.

But today, that optimism is being dampened, with a number of them teetering on the brink of collapse as the severe foreign exchange shortage in the country has compounded their problems.

The manufacturers, who rely on importation for some of the components required for the production of meters, complained that it had become very difficult to access forex to order for those inputs.

They also decried the recent benchmark interest rate hike by the Monetary Policy Committee of the Central Bank of Nigeria from 12 per cent to 14 per cent, saying it would further increase the rate at which commercial banks lend to them.