How Nigeria’s incessant grid collapses can be solved, by MEMMCOL’s boss
Nigeria’s national grid has collapsed 222 in 12 years between January 2010 and June 2022. Between January and September this year, it has collapsed seven times. These collapses have dire social and economic consequences on the economy. It is against this backdrop that Engr. Kola Gbolasere Balogun, Chairman/CEO of Momas Electricity Meters Manufacturing Company Limited (MEMMCOL), in this interview with TBI Africa Media Team, speaks on how this malady can be sustainably addressed. As an outstanding player in Nigeria’s electricity power industry, he x-rayed other issues in the industry such as estimation billing system, energy theft, prepayment metering gap, huge debt in the industry and subsidy, among others, and proffered solutions to them. He expressed optimism that with the right personnel and management in the right positions and operations, the power sector will attain the expected growth and drive the nation’s industrialization aspiration.
It is eight years since Nigeria’s power sector was privatized, but some stakeholders have been clamoring for reversal of the privatization as it has allegedly failed to achieve its purpose. Do you hold the same view as these stakeholders?
I do not share the same view with them at all. This is because at the moment, there is no convincing structure in place to take over the failed administration of the power sector. You can only reverse this privatization process, when you have a great structure in place to manage the rot and complexities. A more realistic approach I would suggest is that we recalibrate the entire process by referring to the very beginning, acknowledge our mistakes and define a new Technocrat-Based Framework to effectively manage the Sector for optimum delivery of best services.
Lately there has been regular system collapses, as an industry expert, what is responsible for this, and how can it be stopped?
It is quite unfortunate that we will continue to experience the incessant system collapse as long as we keep putting the square pegs in the round hole. The Transmission system requires a very meticulous and competent personnel structure especially when it comes to Load distribution, as it entails putting certain calculative preventive measures in place. The issue here is the lack of competence of the entire leadership and Management of the transmission system.
Let’s assume we do not have the adequate Infrastructure for Transmission, I can assure you that if we have competent hands that understand the entire architecture of maintaining a standardized frequency threshold, there would be minimal records of these collapses. Moreover, consequences are not meted out to officers for flaunting standard procedures and protocol to deter them from being negligent or reckless on duty. Impunity has encouraged insubordination and complacency.
This can be stopped by:
- Enforcing consequences for flaunting standard protocols and not doing what is right
- Appointing the most competent people to manage such sensitive Technical Company
- Ensuring that Investments on infrastructure continues, but with close monitoring and precise definition of the goals and accomplishments the investment seeks to validate because it is better to solve a problem.
There has been buck passing among the service providers in the power sector value chain – the generation companies (GenCos), the transmission company (TransCo) and the distribution companies (DisCos), about the particular link in the chain that is responsible for the power sector woes. To you, which of the link – GenCos, TransCo and DisCos contribute most to the power sector problems?
Neither the GenCos nor the DisCos or TransCo as it relates to the name is responsible for the power sector problems, but the persons behind these companies- The Human Elements of these companies are responsible for the identified problems of the power sector Because it is a Reflection of Nigeria. By and Large, the Human Factor is to be blamed, not the Names as it implies.
The debt overhang in the power industry is staggering; do you see this huge debt being paid?
It is quite unfortunate that there is nothing to show for this debt, but if we understudy the global trends of Power Sector deployments, it is obvious that it is a Profit inclined venture; and if a sector is profit oriented, there is tendency that whatever the overhead cost is can be settled off. However, this debt settlement must be under a revised condition which has a precise definition within the premises and roadmap of a profit driven business enterprise.
In other words, the future of the power sector I envisage must be profit driven, devoid of subsidy, incompetence and human sentiments.
Prepaid meter has become a golden option in Nigeria, how has your company helped in addressing the challenges of meter availability in Nigeria?
Often times, people tend to forget the events that led to my advocacy of prepayment meters as far back as 1995. My struggle for the encouragement of prepayment meters was inspired by the need to address the lacuna in revenue leakages at the downstream – which was the distribution company at that time.At that time, dysfunctionality grew full blown between the consumers and the then service providers -N.E.P.A, Marketers, among others. The defunct N.E.P.A staff usually disconnected consumers, and then request for reconnection fee from these same consumers. This seeming priority misplacement and less optimization of staff informed my advocacy for prepayment. We appreciate the nation’s growth in terms of the prepayment concept ideology, which by the way is the only way we can guarantee cost recovery. However, the human factor is still drawing us backwards from getting the absolute benefits of prepayment, because when you’re prepaying for a service, it means there must be liquidity for further investments, but because Nigeria’s power sector is still bedeviled by issues of energy theft, insincerity In the deployment process, and Disunity between the various levels of the meter deployment cycle – Sellers or Manufacturers – Distributor – Installer of prepayment meters, to have a uniform agenda about taking responsibility of ensuring that revenue leakages are blocked totally. This is why we still have the short fall in meeting the metering gap.
Since technology has given us the opportunity to operate under a common platform which at the moment, the sector has refused to recognize. My advice to the sector players over the years is to reiterate to them that the most successful sectors like the Banking, Insurance and Telecoms today are successful because partners and businesses within these industries are licensed and regulated to purpose their businesses within the confines of a standard regulatory framework.
This same Licensing structure can be adopted by the Power sector to ensure that every player within the Meter Deployment cycle is categorized by the services they provide, Licensed and accredited by the acknowledged agency legally empowered to accredit and regulate their activities in complying with best global practices, it should flow from the Manufacturer to the Installer– which is the final stage of deployment. When this is done, it is easy for a consumer to approach any licensed Meter Seller or Manufacturer of their choice to purchase their meters, contact licensed installers to install their meters in their premises, and alert the DisCos for onward configuration almost immediately.
How do you rate government’s patronage of indigenous electricity meter manufacturers?
As far as I am concerned, in recent times, there has been tremendous improvement in Government’s patronage, but it shouldn’t be a haphazard patronage. It should be a continuous support for the local industry with the mindset of backward integration and a mindset of providing employment at a very high rate in order to reduce unemployment to the barest minimum, while at the same time, bridge the technology knowledge gap.
Do indigenous meter manufacturers have the capacity to meet national demand for prepaid meters?
Yes… An emphatic Yes! There is sufficient capacity and capability to meet National demand, as long as there is an undertaking of the Government’s assurance that Meters would be off-taken.
What is the total production capacity of the indigenous electricity meter manufacturers? Out the total, what is the production capacity of your company – MEMMCOL?
I won’t be able to give you the precise production capacity of other Manufacturers, but I can give you the entire production capacity figures in my own case, under normal circumstances, we have the capacity to produce 500,000 meters annually.
Obsolete substations have contributed immensely against effective power supply in Nigeria, how has your company helped to mitigate this?
Thank you so much for this question. Yusuf, I can boldly say that the prime years of my life have been about electricity as I have worked with the power sector for the past 30 years. I owe every duty to advise the power sector on the way to go. With my level of experience and expertise, I must say that the entire effort of the Federal Government will not make any meaning, if we refuse to acknowledge the fact that our Distribution Substations at the moment are major obstacles hindering the stability of the Power station. My point exactly here is that the only interface we have today between the consumer and the DISCO is the distribution Substation, but they are in total state of dilapidation; An Eye-sore.
This is why I took it upon myself to introduce the “Substation enhancement concept” just the way I introduced the Prepayment Concept in 1995. The idea behind this noble Substation Enhancement Concept is to address practically, all the flaws defined in the Distribution Code – an Act that intended to supervise the state of the Distribution Substations. Unfortunately, most of the players are not adhering to this Code, and that is the reason I have conducted the application of these new Substations Enhancement Concept across a few DisCos for the Nation to see that it is the way to go in order to have a stable and steady power supply as well as to guarantee cost recovery of our investment in the upstream (Generation and Transmission Companies). Kindly refer to My Brochure on the Substation Enhancement Concept. I have some pictures to buttress my points as submitted here
How do you think government can intervene to address power sector challenges in Nigeria?
As a stakeholder, I submit that if we are fearful to declare a state of emergency in our Power Sector, then we should be bold enough to appoint the right person who has the pedigree, the required expertise and is bold enough to take responsibility for his decisions, or resign if he fails on the task; Someone who is given utmost freedom and independence to operate; hire and fire where the situation calls for it, to lead the Power Sector.
Over the years, your company has trained substantial number of young graduates on meter installation and others, how has government tapped into this initiative?
Very well, what we did at that time is that we envisaged the deficiency of manpower in the installation of electricity meters, which we identified would clearly impede and frustrate the efforts of the Government in sponsoring the deployment of the Meters because despite the fact the Federal Government has intervened in the payment of these meters to be deployed, installing of the meters Properly in each of the consumers’ premises is another thing entirely.
This is why my Company undertook this as part of our Corporate Social Responsibility to train some youths across the country on meter installation professionally in order to complement the Federal Government’s efforts, and this today has earned us an International recognition.
We are committed to continue doing it because it is a way of taking people from the streets and as the metering gap is still huge, then there is room to accommodate thousands of prospective installers in the power sector. On this note, I will implore the Government to encourage the empowerment of our youths through skill acquisition Programmes, as this is synonymous to Teaching them how to fish rather than giving them fish. As soon as you train a Nigerian citizen on Meter installation or to participate in any power sector deployment exercise which includes so many other trainings, outside meter installation, it means you have given them a means of livelihood which is far better than handing them stipends or leaving them wandering on the streets.
System collapses, estimated billings, power supply deficiency and energy leakages have been the order of the day, how can all of these be addressed?
I have said this over and over again, the incessant system collapse and other identified failures are as a result of lack of adequate infrastructure in the Power Sector and are attributed to human Elements. The most critical aspect of this challenge is that the system is short of competent hands to manage all these policies which were intended to make Nigeria a better place.
How can it be addressed? Appoint competent persons to manage the sector, It’s as simple as that.
We learnt that the Federal Government engaged your expertise in the power sector, in which areas, do you apply this expertise?
Well, I am of the opinion that it is recognition of our efforts in the Power sector. We have been and are still involved in the development of Metering Codes. On several occasions, we have offered Practical ideas and concepts which served as road maps to review various acts in the power sector, one of which is Franchising – which I am still very much in its advocacy.
You are the Chairman of the foremost meter manufacturing company in Nigeria, tell us about your company and how it has impacted the power sector.
Thanks for that question…. That singular effort is the one that has defined the Road Map for Manufacturers today. You recall that as of today, MEMMCOL is the only Original Equipment Manufacturer (O.E.M). What this means is that we hold the ACE of DESIGNS of all kinds of Meters, and that is what has led to all the innovations we have incorporated into metering today, like: Dual Tariff, Billing Application, Introduction of Power Enhancement Panel, among others. I must also say that there are endless possibilities within this industry that are yet untapped from our knowledge as a manufacturing company, because we are not just designed for Meter Manufacturing, we are designed to solve the Energy Crises that has befallen the downstream level of the power sector value chain.
Give us an overview of the operations of your company?
We metamorphosed from Momas Systems Nigeria Limited to Momas Electricity Meters Manufacturing Company Limited (MEMMCOL). In other words, we started as a service provider to the Power sector, marketing another Company’s Brand under our brand name. This is a major transition for us that reflects the development we have brought into the country’s Power sector and the Nation at Large – The development of Software Application, a domesticated meter that addresses Peculiarity- Leaving our factory fit to compete and be comparable to other Global O.E.M status standards. This feat alone is more than enough to make a Nation proud. Also, our readiness and willingness to comply with global best practices is evident, as we are ISO Certified.
As the Chairman of the Momas Group, every Director reports to me. The Company’s Organogram is structured to accommodate various levels such as administrative staff and Departments such as: The Research and Development (R&D), Production Department, Human Resources Department, among others.
It takes the commitment of these various Departments, working in synergy to actualize the Vision I had created, managed and supervised over the years to put us where we are today.
What are the challenges confronting the operations of MEMMCOL and other indigenous meter manufacturing companies in Nigeria?
Well, there must be continuous Government support in terms of funding and ensuring that we are beneficiaries of CBN’s concessionary schemes for the availability of Foreign exchange, in complementing our efforts to outsource Raw Materials Overseas. Similarly, long term plans should be made by the Government to provide alternative means of domesticating these raw materials sought Overseas, to be available locally, so as to discourage the needs of relying on foreign countries and foreign Currencies, to thrive as a Nation. And the only way to achieve the domestication of the raw materials is for the Government to adopt and approve a single specification of the electricity meters rather than the so many meter types we have in the country today. If this is done, it will bring about the desired commercial value to the production of the raw materials, it will give direction to manufacturing and the anticipated growth and technological development of the power sector as well as other sectors will be achieved which in the long run will stimulate economic growth of our Nation.
Also, Government must do more to support Original Equipment Manufacturers (OEM) like us by putting additional incentives in place to encourage our ingenuity which will go a long way to encourage other existing and upcoming players to desire to be OEM manufacturers.
Finally, Government should ensure that all certified OEM manufacturers are recognized by all the relevant Government Agencies and they should be treated specially and rendered accelerated services at all times especially when it concerns their sourcing for foreign exchange (forex) through the official market to procure raw materials, importation, clearing and movement of their raw materials to mention a few.
Where do you see MEMMCOL in the next 10 years?
I see MEMMCOL in 10 years as a global brand, because we are not relenting in our quest to develop our electricity meters be at par with best global standards required by any other country just like any other World Class Meter Manufacturer.
What is your advice to DisCos, as the arm in the value chain that deal with the customers directly, on best way to revamp the power sector?
- The DisCos’ Board of Directors structure should reflect the composition of ownership between the Private investor and the Government ownership, such that decisions are taken based on merit, competence, objectivity, efficiency and on an output-based template.
- There should be an alternative of succour for breach of sub-management timeline meeting due to circumstances beyond their control.
- Technological approaches should be adopted in the process of revenue collection so as to ensure transparency and discipline,
- It is advised that DisCos should arrange for a third party Agency structure with the required expertise to undertake the management of the infrastructure that services the downstream Level so as to guarantee best services delivery to consumers, which would encourage more revenue. They must also ensure that these revenues generated would be sufficient to pay all service providers within the implementation and management process value chain.
- The Nigeria Electricity Reform Power Sector is well structured to cater for all these developments, and these reform provisions should be adhered to, with every service provider playing its role.
Lastly, it is important that proper orientation is done for all the staff about the administration and inter- relationship between the company and consumers. With the submissions above, we would have better DisCos and a better Power sector ultimately.
As you grow towards 60, what lessons have life taught you over the years, the gains, the losses, which will teach others to be on the right track?
Life has taught me the possibilities of a seemingly impossible situation, as I have come this far today from a place of total hopelessness as a young child in a country of many resources and abundance.
Life taught me the strength in believing in oneself, the strength in believing that nothing is impossible, and the blessings that come with thinking hard and working hard in expressing your vision which only you can see at its very early stage.
Life also taught me these famous quotes of mine: “There are no two people who are the same;
Discover who you are;
Pick the best of those who have achieved;
Chart your own course;
But your goal must be beneficial to mankind.”
Advice to us as a Nation – The love of our country must supersede any other interest. The dedication and drive to make an impact that will transform the coming generations should be the focal points of our individual sacrifices.
We must reduce sentiments as much as possible and play down on the politics of ownership while we encourage the politics of development. These are my advice to citizens of our dear Nation as we do not have any other place to call home but here – Nigeria, so that we do not become a wasted generation; and so our race does not go into extinction.
What is your advice to young engineers that may want to tread the path you chose?
Engineering is the foundation of Nation Building hence Engineers should believe in themselves. They should take engineering practice beyond the class exercise, they should be innovative, they should always think outside the box.
However, these Innovations should address certain peculiarities or challenges within the primary and secondary Geographical environment they find themselves. It is in the bid to provide those solutions that you become a unique individual in your line of thoughts as an engineer, not by embracing the theories of the books and classroom.
Remember, the book is only there to guide you, but you must be innovative as an Engineer.
Thank you sir.
