Meter asset providers appeal to Central Bank of Nigeria to provide single digit interest rate loans to enable them bridge the metering gap

To enable them provide meters to Nigerians, the meter asset providers, MAPs, have appealed to the Central Bank of Nigeria, CBN, for a single digit interest rate at which they could get loans. Taiwo Oladotun, managing director, Unistar Hi-tech System Limited, said the development became necessary to enable them bridge the metering gap.

Oladotun whose firm is one of the indigenous meter manufacturers, said the decision to seek CBN‘s intervention was paramount in view of the huge funds required by the operators to supply meters to consumers nationwide. Part of the issues being discussed with the CBN, he said, is on reducing interest rate in the country.

He said MAPs need single digit rate for operation as against the double-digit interest rate charged on facility by banks. “We are talking to the CBN on how to provide interventions in the area of providing facility at a single digit rate. The CBN gave terms and conditions for providing interventions in the operation of meter asset providers. In the terms, the apex bank intends to provide facility at double digits interest rates. However, we appealed to CBN to make the interest rate single digit,” he said.

Similarly, Kola Balogun, managing director, Momas Electricity Meter Company Nigeria Limited, said CBN’s intervention is vital if the operators in the metering sub-sector would make any meaningful impact. He urged the CBN to intervene in the new metering arrangements unfolded by the government with a view to ensuring that meters are adequately provided to consumers across the country.

According to him, double digit interest rates are prevalent in the banking industry, adding that the government needed to bring the interest rates down for operators in order to achieve growth. “What we are asking the CBN to do is to give meter asset providers single digit interest rate as they commence operation soon.

“Through this means, meter asset providers would be able to play well in the industry by manufacturing, supplying and installing meters in the country. Without CBN interventions, it would be difficult for the operators in the metering value chain to record success.”

– Jan. 11, 2019 @ 15:15 GMT |