Millions of Nigerian electricity consumers could soon benefit from accelerated deployment of prepaid meters following the withdrawal of a lawsuit by the Association of Meter Manufacturers of Nigeria (AMMON), clearing the way for the Federal Government to resume procurement of 1.55 million smart electricity meters.
The legal action, which had stalled key metering intervention programmes, was formally withdrawn through a Notice of Discontinuance filed at the Federal High Court in Kano, ending a dispute that had delayed procurement under the Distribution Sector Recovery Programme (DISREP), Meter Acquisition Fund Phase III (MAF 3) and the Presidential Metering Initiative (PMI).
The breakthrough followed high-level interventions by the Minister of Power, Joseph Tegbe, who convened consultations between local meter manufacturers and key government agencies to resolve concerns surrounding the procurement framework.
The dispute had intensified in April 2026 after AMMON secured a court injunction suspending the bidding process for the metering programmes, raising fears that Nigeria’s efforts to reduce its massive electricity metering deficit would suffer significant setbacks.
However, after extensive negotiations involving AMMON, the Bureau of Public Enterprises (BPE), the Transmission Company of Nigeria (TCN) and other stakeholders, the parties reached a compromise that addressed the concerns of indigenous manufacturers while preserving compliance with both local content requirements and international competitive procurement standards.
The resolution effectively removes a major obstacle to the procurement process and is expected to fast-track the installation of smart meters for electricity consumers across the country.
The Federal Government has repeatedly identified the country’s metering gap as one of the biggest challenges facing the power sector, with millions of consumers still relying on estimated billing—a system that has generated widespread public dissatisfaction over disputed charges and poor billing transparency.
Industry experts believe that expanding prepaid metering will not only eliminate estimated billing for many households and businesses but also improve customer confidence, enhance revenue collection by electricity distribution companies and strengthen the financial viability of the power sector.
The settlement is also viewed as a significant milestone in the government’s drive to balance local industrial participation with the need to attract international financing and technical support for critical electricity infrastructure projects.
The agreement aligns with the Federal Government’s Nigeria First policy, which prioritises domestic manufacturing and local content development while maintaining transparency and competitiveness in public procurement.
Under President Bola Ahmed Tinubu’s Renewed Hope Agenda, the power sector has been identified as a strategic pillar for economic growth, with reforms focused on expanding electricity access, improving supply reliability and creating an enabling environment for industrial development.
With the legal impasse now resolved, the Federal Government is expected to accelerate implementation of its metering programmes to close longstanding gaps in the electricity value chain and improve service delivery across the country.
For millions of electricity consumers burdened by estimated billing, the withdrawal of the lawsuit marks a significant step towards achieving universal metering and a more transparent, efficient and consumer-focused electricity market.
