Meter Manufacturers Withdraw Suit Against FG, Clearing Path for 1.55 Million Smart Meters

 

Electricity consumers across Nigeria may soon see accelerated deployment of smart meters following the withdrawal of a lawsuit by the Association of Meter Manufacturers of Nigeria (AMMON) against the Federal Government, a development that clears the way for the procurement of 1.55 million meters under key government intervention programmes.

According to the update on Tuesday, AMMON formally discontinued the suit through a Notice of Discontinuance filed at the Federal High Court in Kano after the intervention of the Minister of Power, Joseph Tegbe, who convened a high-level resolution meeting involving the association and relevant government agencies.

The legal dispute had stalled several metering initiatives after AMMON secured an injunction in April 2026, halting the bidding process for major government-funded metering programmes.

With the suit now withdrawn, procurement activities are expected to resume immediately under the Distribution Sector Recovery Programme (DISREP), the third phase of the Meter Acquisition Fund (MAF 3), and the Presidential Metering Initiative (PMI), all aimed at reducing Nigeria's huge metering deficit.

The resolution followed extensive consultations led by the Ministry of Power in collaboration with the Bureau of Public Enterprises (BPE) and the Transmission Company of Nigeria (TCN). The parties reached a mutually acceptable agreement that addressed the concerns raised by local meter manufacturers while remaining consistent with national procurement regulations and international competitive bidding requirements.

The agreement paved the way for AMMON to withdraw its legal action, bringing an end to months of uncertainty that had delayed the implementation of critical metering projects.

Officials said the resolution demonstrates the Federal Government's commitment to balancing support for indigenous manufacturing with the need to secure financing and maintain transparency in the procurement process.

The Ministry of Power noted that the outcome aligns with the Federal Government's "Nigeria First" policy, which seeks to promote local industrial participation while advancing reforms designed to improve electricity supply and sector performance.

Minister Tegbe was commended for pursuing dialogue and consensus-building rather than prolonged litigation, a move officials said reflects the collaborative approach being adopted to accelerate reforms in the power sector under President Bola Ahmed Tinubu's Renewed Hope Agenda.

Closing Nigeria's metering gap remains a major priority for the government, as increased meter deployment is expected to improve revenue collection by electricity distribution companies, eliminate the widespread practice of estimated billing, and enhance consumer confidence in the electricity market.

The resolution is also expected to strengthen ongoing efforts by the Federal Ministry of Power to deliver more reliable, transparent and affordable electricity through sustained collaboration with stakeholders across the Nigerian power sector.

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