The Association of Meter Manufacturers of Nigeria has explained why it discontinued its legal action challenging the importation of 1.55 million smart meters under the Distribution Sector Recovery Programme II, saying the decision was taken in the overriding national interest after reaching an amicable resolution with the Federal Government.
In a chat with our correspondent, the AMMON President, Durosola Omogbenigun, said the dispute was resolved following engagements with the Minister of Power, Joseph Tegbe, and the Director-General of the Bureau of Public Enterprises, Ayo Gbeleyi.
Omogbenigun stated that the association decided to halt the case to support the sustainable development of Nigeria’s electricity sector.
The PUNCH recalls that the World Bank had recently warned that it could stop the meter importation due to the court order obtained by AMMON. 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 was not resolved soon.
According to the bank, the court injunction had stalled the opening of bids under the second phase of the international competitive bidding process for the procurement of additional smart meters.
However, with the resolution of the dispute, AMMON discontinued the case. “The Association has consequently discontinued its legal action in the overriding national interest and in furtherance of its long-standing commitment to the sustainable development of Nigeria’s electricity sector,” Omogbenigun said.
The AMMON boss said the discussions with the government produced agreements that resolved the immediate dispute while creating a framework for stronger collaboration with indigenous meter manufacturers.
According to him, “The discussions were candid, respectful and forward-looking. They produced creative and mutually beneficial understandings that not only resolved the immediate dispute but also laid the foundation for a stronger partnership between the government and Nigeria’s indigenous meter manufacturing industry.”
Explaining the basis of the dispute, AMMON said the procurement requirements adopted for the World Bank-backed DISREP II meter acquisition disadvantaged Nigerian manufacturers.
“The dispute arose from qualification criteria adopted under the DISREP II International Competitive Bidding (ICB) procurement for 1.55 million smart meters, which effectively excluded Nigerian meter manufacturers while favouring long-established foreign manufacturers,” he stated.
According to him, AMMON had consistently maintained that such procurement outcomes, though unintended, risked slowing the growth of Nigeria’s domestic metering industry, limiting industrial investment and constraining local value creation.
The association leader said the resolution demonstrated that dialogue between the government and industry remained the best approach to addressing concerns while sustaining confidence in ongoing power sector reforms.
“The resolution reached through dialogue demonstrates that national development objectives are best achieved when the government and industry work collaboratively to address legitimate concerns while preserving confidence in public institutions and ongoing sector reforms,” he added.
The AMMON boss said the association believed the outcome aligned future electricity metering procurements with the Federal Government’s industrialisation and local content policies.
It stated, “AMMON believes the outcome represents a significant milestone in aligning future electricity metering procurements with the policy direction of President Bola Tinubu, particularly the ‘Nigeria First Policy’, ‘Nigeria’s Industrial Policy’, and the Federal Government’s local content aspirations.
“These policy initiatives recognise that sustainable economic growth is best driven through domestic production, technology development, industrial capacity expansion and the creation of quality Nigerian jobs.”
The association expressed optimism that deeper local participation in electricity metering would encourage component manufacturing, technology transfer, skills development, research and innovation while creating jobs and conserving foreign exchange.
It also reaffirmed its support for government metering initiatives, including the Distribution Sector Recovery Programme, the Presidential Metering Initiative and the Meter Acquisition Fund, saying it remained committed to working with stakeholders to accelerate universal metering and strengthen Nigeria’s electricity metering industry.
Speaking at a media briefing recently, the power minister assured Nigerians that the Federal Government would deploy more meters in an attempt to close the metering gap.
