Bulgarian meter manufacturer Incotex has gained a foothold in the Nigerian pre-paid meter market with a partnership with engineering company Techno Gas and Power, according to local media sources in the West African country.
As part of the deal, Techno Gas and Power will invest one billion naira (US$6 million) over the next five years with the aim of manufacturing 350,000 pre-paid meters a year to meet local demand.
Collins Onyeama, managing Director of Techno Gas and Power, told media in Lagos last weekend that the partnership with Incotex would eventually result in creating a manufacturing facility in the Nigerian capital.
Mr Onyeama said the deal with a European partner was in response to Nigeria’s 6.5 million pre-paid meter gap and public outrage over estimated billing by electricity distribution companies.
The tie-up with the Bulgarian firm will ensure that consumers are able to use modules within 48 days of purchase, in line with requirements laid out in the Credit Advance Payment for Meter Installation.
Nigeria distribution companies
Onyeama confirmed that the pair had meet with electricity distribution companies in Enugu, Ibadan and Ikeja, Lagos.
They have also received backing from the Nigeria Electricity Regulatory Commission to find ways to tackle challenges in the power sector.
Steve Muckett, a representative of Incotex, was reported as saying that Incotex could produce more than two million pre-paid meters annually.
He explained that the meters were produced in accordance with European quality standards, noting that the meters would meet various segments of the Nigerian market.