The primary reason for calling this press conference is to address an impression that was created in the media recently, which was not correct. Specifically, Daily Trust edition of Thursday, June 5, 2014 carried a report on page 28 with a bold title: “No company produces electricity transformers in Nigeria – BPE”. Likewise did Tribune of Friday, June 6, 2014 on page 12 Gentlemen of the Press, that statement is misleading and a disservice to the Nigerian Content Development initiative.
2. The precursor to the Nigerian (Oil and Gas) Content Development Law of 2010 is NSE’s Nigerian Content Committee, which is a standing committee set up by the Nigerian Society of Engineers (NSE) in 2006 to undertake studies and propagate the totality of composite value added or created in the Nigerian economy, through the utilization of Nigerian human and material resources for the provision of goods and services to all facets of our industrial and social life, without compromising quality, health, safety and environmental standards. The Law is therefore framed within the context of growth of Nigerian entrepreneurship and domestication of assets in line with Nigeria’s strategic developmental goals.
In my inaugural Speech as the 29th President of the NSE, I made a pledge that one of the cardinal focal points of my administration will be to vigorously push not only for the diligent implementation of the Nigerian Content law, but also for its application to all other critical sectors of our economy, namely: engineering, agriculture, construction, ICT, automotive, shipping, transport, among others.
Gentlemen, I make bold to reiterate that the statement credited to the Director-General of the Bureau of Public Enterprises to the effect that there is no company in Nigeria that produces electricity transformers is misleading and a disservice to the efforts of the companies in the manufacturing sector which are contributing to Nigerian Content development. Such statement becomes worrisome, coming from an institution of the Federal Government which should take keen interest in undertakings in the commerce and industry sector of the economy, and which major functions include minimizing economic inequalities by promoting healthy competition amongst corporate entities.
Conceivably, the most appropriate thing is for us to set the records straight because we are involved.
Nigerian Transformer Manufacturing Companies
There are two (2) major electricity transformer manufacturing companies, fully licensed and in full operation in Nigeria; namely:
– DANELEC FZE
– ELSEWEDY ELECTRIC COMPANY LIMITED
Danelec FZE is the first indigenous manufacturer of 3-Phase distribution transformers, insulated in mineral oil/resin. Danelec, which has its factory on Plot C6a, Free Trade Zone, Murtala Mohammed Highway in Calabar, was registered under Nigeria Export Processing Zones Act on December 10, 2007.
The company was issued an operating license for the establishment of transformer/electrical and solar equipment manufacturing factory in July 2008 while it got its SON certification (Certificate No. EE-2043) after the SON mandatory conformity assessment program (MANCAP) conducted on March 11, 2009.
Other details about the company include:
– Process Certification: ISO 9001:2008 (issued Sept. 20, 2010)
– Installed Capacity: 150 transformer units per month
– Products Guarantee: 12 months
– Professional Affiliations: Nigerian Society of Engineers; Manufacturers Association of Nigeria
– Endorsements: Fed. Min. of Power, Nigerian Electricity Regulatory Commission, Rivers, Cross Rivers, Kaduna and Kano State Governments.
Elsewedy Electric Nigeria Limited
Elsewedy Electric was established in Nigeria in 2008 in Lagos with an investment sum of USD 20 million. Its establishment was obviously with a view to contributing significantly to the Nigerian
economy. Over the years, Elsewedy has diversified its operations and extended its production lines to include manufacturing of prepaid electric meters, energy saving lamps, fibre glass poles, wires and cables.
Specific details on Elsewedy Electric:
– Business Permit Certificate issued by Lagos State Government
– Incorporated in Nigeria and Certified by Corporate Affairs Commission (RC. 781921)
– Standards Organisation of Nigeria Certification (MANCAP Cert. No. 001026), issued in 2010 for production of 300KVA transformers.
– Member, Manufacturers Association of Nigeria (Reg. No. GML/3709), issued October, 2009.
– NERC Certification (Cert. No. MF/0004), issued May 2013.
– Licensee of Standard Transfer Specification (STS) Association, South Africa (Reg. No. 95/08496/08)
– Process Certification (ISO 9001:2008), issued in January 2010
– Installed capacity: 2500 transformer units per annum
In establishing the Nigerian Content Development and Monitoring Board (NCDMB) in April 22, 2010, President Goodluck Jonathan specifically saddled it with the mandate to seek to increase
indigenous participation in the Oil and Gas industry, build local capacity and competences andcreate linkages to other sectors of the national economy to boost industry contributions to the growth of the country’s Gross Domestic Product (GDP).
Danelec FZE and Elsewedy Electric, in their combined capacity, have continually strived to proffer logical and practical solutions to the challenges of economic development, especially in the electricity generation and distribution sector. Their solution model has been based largely on driving down capital flight, through utilization of about 90% of Nigerian content in both personnel and material resources in their production processes.
These companies therefore deserve recognition, encouragement and patronage for contributing to national development as the volume of investment they can plough back into the economy will be proportionally related to their Returns on Investment. Patronising these companies will bring meaning to our recent rebased GDP of $510 billion which has made us number 1 in Africa.
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