Nigeria: 1.55m Meter Deal Survives Court Dispute, Puts Focus on Electricity Reform

The planned procurement of 1.55 million smart meters under Nigeria’s electricity recovery programme can proceed after the Association of Meter Manufacturers of Nigeria, AMMON, withdrew its court case against the importation.

AMMON President, Durosola Omogbenigun, said the association ended the case after talks with Power Minister Joseph Tegbe and the Director-General of the Bureau of Public Enterprises, Ayo Gbeleyi.

The settlement is significant for Nigeria’s electricity sector because the World Bank had warned that the court action could lead to cancellation of the meter procurement.

The bank had also said the court order stopped the opening of bids for the second phase of the international competitive bidding process for additional smart meters under the Distribution Sector Recovery Programme II, DISREP II.

AMMON said it withdrew the case in the overriding national interest and to support the sustainable development of Nigeria’s electricity sector.

“The Association has consequently discontinued its legal action in the overriding national interest and in furtherance of its long-standing commitment to the sustainable development of Nigeria’s electricity sector,” Omogbenigun said.

World Bank had warned of cancellation

The court dispute arose from procurement requirements used for the World Bank-backed purchase of 1.55 million smart meters.

AMMON said the qualification rules disadvantaged Nigerian meter manufacturers by effectively excluding them and favouring long-established foreign manufacturers.

“The dispute arose from qualification criteria adopted under the DISREP II International Competitive Bidding (ICB) procurement for 1.55 million smart meters, which effectively excluded Nigerian meter manufacturers while favouring long-established foreign manufacturers,” Omogbenigun said.

The association said it had maintained that such procurement outcomes could slow the growth of Nigeria’s domestic metering industry.

It also said the situation could limit industrial investment and local value creation.

The World Bank had warned that the legal action was the programme’s biggest implementation risk and could force cancellation of the procurement if the dispute was not settled soon.

The warning gave the court case direct significance for the electricity metering programme, as the injunction had already stopped the opening of bids.

AMMON’s withdrawal now ends its legal challenge after discussions with the Federal Government produced an agreement on the dispute.

Omogbenigun said the talks also created a basis for cooperation between the government and indigenous meter manufacturers.

“The discussions were candid, respectful and forward-looking. They produced creative and mutually beneficial understandings that not only resolved the immediate dispute but also laid the foundation for a stronger partnership between the government and Nigeria’s indigenous meter manufacturing industry,” he said.

Local manufacturers seek greater space

AMMON said the agreement could shape future electricity meter purchases under the Federal Government’s industrialisation and local content policies.

The association said the outcome was in line with the Nigeria First Policy, Nigeria’s Industrial Policy and the government’s local content aspirations.

It said those policies support domestic production, technology development, industrial capacity and the creation of Nigerian jobs.

AMMON also said greater local participation in meter production could support component manufacturing, technology transfer, skills development, research and innovation.

The association said local production could also create jobs and conserve foreign exchange.

Omogbenigun said the settlement showed that government and industry could resolve disputes through dialogue while maintaining confidence in public institutions and power sector reforms.

“The resolution reached through dialogue demonstrates that national development objectives are best achieved when the government and industry work collaboratively to address legitimate concerns while preserving confidence in public institutions and ongoing sector reforms,” he said.

AMMON has also reaffirmed its support for the Distribution Sector Recovery Programme, the Presidential Metering Initiative and the Meter Acquisition Fund.

The association said it would continue working with stakeholders to accelerate universal metering and develop Nigeria’s electricity metering industry.

The issue is also tied to the Federal Government’s plan to reduce the country’s metering gap.

The Power Minister had assured Nigerians at a recent media briefing that more meters would be deployed as part of efforts to close the gap.