The Federal Government has resolved its legal dispute with local meter manufacturers, clearing the path to deploy 1.56 million electricity meters before the end of 2026.
Minister of Power Joseph Tegbe announced the resolution during a media interactive session in Lagos on Friday, July 31, 2026. He revealed that the government reached an agreement with the Association of Meter Manufacturers of Nigeria (AMMON), resulting in the withdrawal of a court injunction that had halted the metering programme for six months.
Resolving the AMMON Procurement Dispute
The dispute arose from demands by local manufacturers for a larger share of meter supply contracts. While the government remains committed to President Bola Tinubu’s "Nigeria First" policy, Tegbe emphasized the need to balance local capacity with international procurement to meet national demand.
The court injunction had prevented the government from procuring, supplying, and installing meters. Following three weeks of negotiations, the government signed a new agreement with AMMON to secure their support for the upcoming rollout.
Saving the World Bank DISREP Programme
The resolution comes a month after the World Bank warned that the AMMON lawsuit was the biggest risk to the $500 million Nigeria Distribution Sector Recovery Programme (DISREP). The programme, approved in February 2021, is scheduled to run until May 2028.
The litigation had blocked the procurement of 1.55 million smart meters under international competitive bidding and prevented the Bureau of Public Enterprises from executing contracts for 217,000 locally procured meters.
This breakthrough follows the recent cancellation of $717.7 million in undisbursed funding under the World Bank-backed Power Sector Recovery Performance-Based Operation (PSRO) due to tariff deficits and operational inefficiencies.
