Local manufacturers block importation of 1.55 million meters

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The Association of Meter Manufacturers of Nigeria has secured a court injunction halting the procurement of 1.55 million smart meters.

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This development is a direct threat to the implementation of the World Bank’s $500m Nigeria Distribution Sector Recovery Programme.

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In its latest Implementation Status and Results Report obtained from its website on Friday, the World Bank disclosed that the legal action had become the programme’s biggest implementation risk and could force the cancellation of the procurement if the dispute is not resolved soon.

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According to the report, the injunction has stalled the opening of bids under the second phase of the International Competitive Bidding process for the procurement of additional smart meters.

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“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),” the World Bank noted.

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The bank explained that AMMON, representing local meter manufacturers and assemblers, argued that the international procurement framework excluded Nigerian manufacturers and undermined domestic industry development.

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It noted that the Transmission Company of Nigeria Project Management Unit had extended the bid submission deadline three times since the injunction, with the latest deadline fixed for June 25, 2026.

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The report warned that failure to resolve the dispute promptly could have wider consequences for the programme.

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It stated, “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.”

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The Nigeria Distribution Sector Recovery Programme, approved by the World Bank in February 2021, is designed to improve the financial and technical performance of electricity distribution companies through reforms, metering and network investments.

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Despite the legal setback, the World Bank said implementation under the programme continued to improve, maintaining its “Moderately Satisfactory” ratings for both overall implementation progress and progress towards achieving its development objective.

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The report noted that the programme had been upgraded from “Moderately Unsatisfactory” six months earlier, reflecting sustained improvements in implementation.

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It added that deployment of smart meters under the first phase of the international procurement had accelerated significantly.

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According to the report, as of June 15, 2026, about 1.23 million smart meters had been manufactured, 1.03 million had arrived in Nigeria, while 482,000 had been installed, up from 365,000 recorded during the programme’s mid-term review in April.

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“Under the Investment Project Financing component, meter installation under ICB1 has continued to accelerate. As of June 15, 2026, 1.23 million smart meters have been manufactured, of which 1.03 million have reached Nigeria, of which 482,000 have been installed,” the report stated.

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The bank added that the programme had so far provided direct electricity access to about 530,000 people under its contribution to the Mission 300 initiative, with the figure expected to rise as installations continue.

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It also expressed optimism that the Nigerian Electricity Regulatory Commission’s January 2026 directives on DISREP implementation would further accelerate meter deployment by electricity distribution companies.

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The report further revealed that contracts for another 217,000 meters to be procured locally through the National Competitive Bidding process had reached an advanced stage following comments from the Attorney General of the Federation.

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However, it noted that the Bureau of Public Enterprises had tied the signing of those contracts to the lifting of the AMMON court injunction.

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“The NCB contracts for 217,000 domestically procured meters are in an advanced stage of finalisation following receipt of comments from the Attorney General of the Federation. However, BPE has linked NCB contract signature to the vacation of the AMMON court injunction,” it stated.

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The World Bank also disclosed that contracts for the Meter Data Management System, delayed since mid-2025, were in the final drafting stage and expected to be executed before the end of June.

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On the financing component of the programme, the bank said the Bureau of Public Enterprises had begun transferring the $37.5m advance disbursed by the World Bank in December 2025 to electricity distribution companies in phases.

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The report explained that the funds would only be released to each Disco after signing contracts under revised Performance Improvement Plans, with Port Harcourt, Ibadan and Yola distribution companies expected to complete the process first.

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The bank, however, identified the unresolved contractual dispute between the Bureau of Public Enterprises and the Independent Verification Agent as another critical issue requiring urgent attention.

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It said the Bureau was yet to submit a revised scope of work to the World Bank for a no-objection after both parties agreed on a roadmap to resolve the dispute.

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Meanwhile, the World Bank said preparations for an additional $308m financing package for the programme were progressing.

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“The preparation of the $308m Additional Financing is progressing well. The concept note has been finalised, shared with peer reviewers, and comments have been received. The team is fully prepared to proceed to the Concept Review meeting and awaits CMU guidance on timing,” the report stated.

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The report showed that only $87.34m, representing 17.47 per cent of the $500m facility, had been disbursed as of June 2026, leaving more than $400m yet to be drawn.

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It also confirmed that the programme’s closing date had been extended from June 30, 2026, to May 30, 2028.

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Performance indicators contained in the report showed gradual improvements across several areas of the electricity distribution sector. The metering gap narrowed to 57.27 per cent, billing efficiency stood at 82.02 per cent, while more than three million electricity customers had been mapped using geographic information systems. The programme also recorded 379,380 installed customer meters and provided direct electricity access to over 418,000 people through new connections.

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Despite the progress, the World Bank retained the programme’s overall risk rating at “Substantial”, citing political, macroeconomic, institutional, fiduciary and stakeholder risks affecting implementation.

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The PUNCH had recently reported that the Federal Government cancelled $717.7m in undisbursed World Bank financing for Nigeria’s troubled electricity sector, effectively terminating the remaining portion of a $1.52bn power sector recovery programme amid mounting tariff shortfalls, worsening financial pressures, and persistent implementation challenges across the industry.

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The cancellation followed a formal request by the Federal Government and a joint decision by both parties to discontinue financing under the Power Sector Recovery Performance-Based Operation due to evolving sector realities and the inability to achieve key reform milestones.

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