Kano Court Halts Smart Meter Bidding Process Amidst Dispute

In a significant development for Nigeria's power sector, the Federal High Court in Kano has intervened in the ongoing dispute over the procurement of smart meters. Justice M. N. Yunusa issued an order compelling all parties involved to maintain the status quo, effectively halting further progress in the bid process pending a substantive hearing. This judicial intervention stems from an application filed by the Trustee of the Association of Meter Manufacturers of Nigeria (AMMON), representing local manufacturers who are challenging the current procurement exercise.

AMMON, which includes prominent Nigerian firms like Mojec International Nigeria Limited, argues that the ongoing bid process for supplying smart meters to eleven electricity distribution companies across the country is flawed. Their primary concerns revolve around due process and the potential marginalization of indigenous companies. The association contends that proceeding with the procurement could undermine the interests of local meter manufacturers, who have consistently called for greater inclusion in national metering initiatives.

The disputed procurement is a critical component of the Federal Government's strategy to address Nigeria's substantial metering gap and curb the pervasive issue of estimated billing. Initiatives like the National Mass Metering Programme have been launched to enhance transparency and efficiency in electricity billing. However, the push for indigenous capacity development has been a recurring theme, with local stakeholders warning that sidelining domestic manufacturers could weaken the sector's long-term sustainability.

This court order injects a layer of uncertainty into the government's efforts to improve electricity supply and billing. While the government seeks to bridge the metering gap, the legal challenge underscores the persistent demand from local manufacturers for a fair and transparent procurement process that prioritizes and protects domestic industry. The court's decision to pause the process highlights the critical need for robust oversight and adherence to established procedures in large-scale public procurement projects, especially those aimed at national development.

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All parties must maintain the status quo pending the hearing and determination of the motion on notice.