Precious Anga
Lagos — The Association of Meter Manufacturers of Nigeria, AMMON, has withdrawn its lawsuit against the Federal Government, ending months of legal uncertainty that stalled the procurement of 1.55 million smart electricity meters and paving the way for the resumption of key metering intervention programmes.
The decision follows a series of engagements between the Federal Government and the association, culminating in commitments to strengthen Nigeria’s local metering industry through increased patronage of indigenous manufacturers, support for domestic production and policies aimed at reducing dependence on imported electricity meters.
AMMON President, Durosola Omogbenigun, confirmed the withdrawal in a telephone interview, describing the decision as one taken in the national interest after the government pledged to recognise and expand the role of local manufacturers in the country’s electricity sector.
“It was not a case of changing our position. National interest was the overriding consideration,” Omogbenigun said. “The Federal Government agreed to fully recognise the local metering industry. They also committed to increasing patronage and supporting its growth.”
He disclosed that both parties had established a joint working group to drive implementation of the agreement, deepen local content and promote backward integration in meter manufacturing.
“We have formed a working group with the government to expand patronage of local manufacturers. We are also developing a backward integration strategy to reduce reliance on imported meters and strengthen local production,” he added.
The withdrawal removes the legal hurdle that halted procurement under major government-backed metering schemes, including the Distribution Sector Recovery Programme, DISREP, the Meter Acquisition Fund, MAF, Phase III and the Presidential Metering Initiative, PMI, all aimed at closing Nigeria’s metering gap and reducing estimated billing.
In a statement issued by the Special Adviser to the Minister of Power on Media and Public Relations, Adeola Adelabu, the Ministry of Power said the dispute was resolved following the intervention of the Minister of Power, Joseph Tegbe, through extensive consultations involving the Bureau of Public Enterprises, BPE, the Transmission Company of Nigeria, TCN, AMMON and other stakeholders.
The ministry stated that the withdrawal was formalised through a Notice of Discontinuance filed before the Federal High Court in Kano, bringing to an end a legal dispute that resulted in an injunction secured by AMMON in April 2026, which suspended the procurement process for the government’s metering programmes.
According to the ministry, the negotiated settlement balanced the interests of indigenous manufacturers with the requirements of local and international competitive procurement, preserving the Federal Government’s local content agenda while ensuring access to financing needed to accelerate metering deployment nationwide.
The dispute began after AMMON challenged the procurement framework, arguing that it favoured imported meters despite the capacity of Nigerian manufacturers to meet a significant share of national demand. The injunction delayed the procurement of 1.55 million smart meters intended to improve electricity distribution, enhance revenue collection by distribution companies and eliminate estimated billing.
With the legal action now withdrawn, the procurement process is expected to resume immediately, allowing the Federal Government to accelerate efforts to bridge Nigeria’s metering deficit while expanding opportunities for indigenous manufacturers under a strengthened local content framework.
