The Federal Government has announced plans to roll out 1.56 million electricity meters before the end of 2026. This follows the resolution of a legal dispute with local meter manufacturers that had stalled procurement and installation activities for several months.
Minister of Power Joseph Tegbe disclosed the development 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, leading to the withdrawal of the court injunction that halted the metering programme.
The resolution clears the way for the nationwide deployment of smart meters. The initiative aims to reduce Nigeria’s metering gap and improve electricity billing efficiency across the country.
Details of the Settlement
The dispute stemmed from demands by local manufacturers for a larger share of meter supply contracts under the government’s metering programme. Local producers wanted to ensure domestic capacity was prioritized before turning to international suppliers.
Minister Tegbe noted that while the government remains committed to supporting local manufacturing under the Nigeria First policy, it must also ensure sufficient capacity to meet the country’s urgent metering needs. He explained that the final strategy involves a blend of international and local procurement.
The court injunction had prevented the government from procuring, supplying, and installing meters for the past six months to a year. Following three weeks of direct engagement, the association agreed to lift the injunction and sign a new agreement to support the rollout of the 1.56 million meters.
World Bank Concerns and Project Risks
The resolution comes approximately one month after the World Bank warned that the lawsuit was the single largest implementation risk facing the $500 million Nigeria Distribution Sector Recovery Programme.
The legal action had halted the procurement of 1.55 million additional smart meters under the second phase of the programme's international competitive bidding. The World Bank warned that prolonged litigation could force the cancellation of the procurement entirely.
Furthermore, the Bureau of Public Enterprises was unable to execute contracts for 217,000 locally procured meters due to the court case. This dispute occurred alongside the cancellation of $717.7 million in undisbursed funding under the World Bank-backed Power Sector Recovery Performance-Based Operation, adding pressure on the electricity sector.
