I think it is important we give proper perspective . The MAP regulation was issued in 2018 and it set a basis for which independent meter provisions would be done for the power distribution companies through third parties called the Meter Asset Providers .
When the regulation was unveiled and the MAPs were engaged to start , they had contracted metering capacity , which then created an immediate demand for meters in the market , not on the customers side, but on the MAP side .
The immediate demand for meters couldn ’ t be met with our local capacity and the MAPs had to import . And in order to protect customers, the commission decided not to expose Nigerian customers to changing meter prices, because it goes into a regulated base . So what was done was that meetings were held with all the MAPs on the basis of the prices of their meters .
The commission then agreed what the maximum price of a meter would be . And on the basis of that price , the MAPs now did their modeling and placed orders for meters .
But unbeknownst to the commission and the MAPs , there was an increase in the import duty on meters . So we now had meter stock at the ports and the MAPs came and said to us , commission you want us to sell this meter at this price , but we didn ’ t factor in this duty that has gone up by 35 per cent .
So they couldn ’ t bring in meters and because of the pricing and the increased duty, which now cuts into their margins, there was no incentive to place orders . Even the local manufacturers who manufacture meters in Nigeria, their components were also affected by that increase in duty.