Court Battle Slows Nigeria's Smart Meter Expansion Plan

A court order has delayed plans to provide 1.55 million more smart meters under a major electricity project backed by the World Bank.

The legal action has forced authorities to suspend a key procurement process and could affect efforts to improve electricity billing in Nigeria.

Metre rollout faces fresh delay

The World Bank has identified the court case as the biggest challenge facing the Nigeria Distribution Sector Recovery Programme.

The project was created to improve electricity distribution, expand metering and strengthen power networks.

The legal action came after the Association of Meter Manufacturers of Nigeria secured an injunction on April 30, 2026. The group argued that the planned international procurement process did not give Nigerian manufacturers a fair chance to take part.

The ruling stopped the opening of bids for the second phase of the smart meter project. This phase covers the supply of 1.55 million meters.

The Transmission Company of Nigeria has pushed the bid deadline forward three times since the court order. The latest deadline expired on June 25.

The World Bank warned that the tender may have to be cancelled if the dispute continues. It said a prolonged delay could increase costs and create uncertainty for the project.

Progress continues despite setback

The World Bank approved the $500 million programme in February 2021 to support reforms in Nigeria's electricity distribution sector.

Despite the latest setback, work under the first phase has continued. By June 15, about 1.23 million smart meters had been produced. About 1.03 million had arrived in Nigeria, while 482,000 had already been installed in homes and businesses.

The bank also said about 530,000 people have gained direct access to electricity through the Mission 300 initiative.

The legal dispute has also delayed contracts for 217,000 meters meant for local procurement. The Bureau of Public Enterprises has decided not to sign those contracts until the court order is lifted.

Funding for the programme has also moved slowly. By June 2026, only $87.34 million of the $500 million facility had been released.

The World Bank has extended the project's completion date from June 2026 to May 2028. It is also preparing an extra $308 million to support the programme.

The delay comes shortly after Nigeria cancelled $717.7 million in undisbursed World Bank funding meant for another electricity recovery project, prompting concerns about the pace of power sector reforms.