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🇳🇬 Nigeria /Economy & Trade

Local manufacturers block importation of 1.55 million meters

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Documents & data Under investigation
  • Local manufacturers secured a court injunction blocking the procurement of 1.55 million smart meters, jeopardizing a $500 million World Bank program.
  • The World Bank identified the legal action as the program's primary implementation risk, potentially leading to procurement cancellation.
  • Despite the setback, the Nigeria Distribution Sector Recovery Programme continues to show improved implementation, with significant progress in meter deployment from the first phase.

A court injunction obtained by the Association of Meter Manufacturers of Nigeria (AMMON) has halted the procurement of 1.55 million smart meters, posing a significant threat to the World Bank's $500 million Nigeria Distribution Sector Recovery Programme. The World Bank has flagged this legal dispute as the program's most substantial implementation risk, warning that it could lead to the cancellation of the procurement process if not resolved promptly.

The injunction, secured on April 30, 2026, has stalled the opening of bids for the second phase of smart meter procurement through International Competitive Bidding. AMMON, representing domestic manufacturers and assemblers, argues that the international procurement framework disadvantages Nigerian companies and hinders local industry development. The Transmission Company of Nigeria Project Management Unit has extended bid deadlines multiple times in response to the injunction, with the latest deadline set for June 25, 2026.

The most significant implementation risk at present is the court injunction obtained by the Association of Meter Manufacturers of Nigeria on April 30, 2026, which has halted the opening of bids for the procurement of 1.55 million additional smart meters (ICB2).

— World BankThe World Bank highlighted the court injunction as the primary risk to the distribution program in its Implementation Status and Results Report.

Failure to resolve the dispute could trigger wider consequences, including potential cancellation of the procurement to avoid market uncertainty, cost escalations, and further delays. The World Bank is actively engaging with Nigerian government counterparts to find a resolution. The Nigeria Distribution Sector Recovery Programme, initiated in February 2021, aims to enhance the financial and technical performance of electricity distribution companies through reforms and investments.

Despite this legal challenge, the World Bank reported that the program's overall implementation progress and progress toward its development objectives remain "Moderately Satisfactory." Meter installation under the first phase of procurement has accelerated, with 482,000 smart meters installed as of June 15, 2026, indicating continued momentum in other program areas.

The team is engaging with government counterparts to find a resolution. If the matter cannot be resolved in the near term, cancellation of the ICB2 procurement may need to be considered to avoid market uncertainty, cost escalation, and further programmatic delay.

— World BankThe World Bank outlined potential consequences and its engagement strategy to resolve the dispute.
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Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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