Nigeria’s electricity metering programme has become the centre of an intense dispute between indigenous manufacturers and authorities overseeing the World Bank-backed Distribution Sector Recovery Programme (DISREP).
At the heart of the controversy is a critical question: should Nigeria prioritise local meter manufacturers in the massive DISREP metering rollout, or continue relying heavily on foreign suppliers?
The Association of Meter Manufacturers of Nigeria (AMMON) is demanding a minimum of 50 per cent local participation in the DISREP ICB 2 procurement framework, insisting that Nigerian firms possess the capacity, expertise and infrastructure to meet national demand.
The dispute has evolved into a major test of the Federal Government’s Nigeria First policy and its commitment to industrialisation. AMMON argues that local manufacturers have already demonstrated their capabilities through interventions such as the Meter Asset Provider (MAP) Scheme, the National Mass Metering Programme (NMMP), and other federal initiatives.
According to the association, indigenous manufacturers have invested billions of naira in factory expansion, technology, manpower development, compliance certifications and supply chain networks. The group maintains that excluding local firms from large-scale metering projects would undermine Nigeria’s industrial growth agenda and weaken efforts to create jobs and conserve foreign exchange.
In a communication to the Bureau of Public Enterprises (BPE), AMMON stated that it would not withdraw its pending court injunction against the programme without concrete guarantees and legally binding commitments ensuring meaningful local participation.
The association is proposing three key options: allocation of at least 50 per cent of DISREP ICB 2 meter volumes to qualified Nigerian manufacturers; a mandatory CKD/SKD arrangement requiring foreign suppliers to partner with licensed Nigerian manufacturers for local assembly; or the allocation of an additional two million meters exclusively for indigenous manufacturers under a separate financing framework running alongside DISREP ICB 2.
AMMON insists that local manufacturers offer advantages beyond meter production. The association argues that indigenous firms possess deep operational knowledge of the Nigerian environment, established logistics networks, technical integration expertise and reliable after-sales support systems.
The group also believes increased local participation would boost employment, generate tax revenue, encourage technology transfer and strengthen domestic supply chains.
A major source of concern for the manufacturers is what they describe as a history of unfulfilled commitments under previous intervention programmes. AMMON says some local firms incurred significant financial costs during procurement exercises but later faced lengthy delays in contract implementation.
As a result, the association is seeking immediate execution of NCB 1 contracts within 14 days and commencement of contracts under the Presidential Metering Initiative (PMI), which covers approximately 750,000 meters.
AMMON President Ahmed said the Nigeria First policy introduced by President Bola Tinubu should translate into procurement policies that actively support local manufacturing.
He argued that Nigerian companies have invested heavily in factories, engineering expertise and technology transfer and deserve a fair opportunity to compete for major national projects.
The association further criticised the continued involvement of certain foreign suppliers, claiming some operate merely as intermediaries without manufacturing facilities, while indigenous companies with significant investments are overlooked.
Despite maintaining its legal challenge, AMMON says it remains open to further negotiations and is willing to support temporary adjournment of court proceedings to facilitate dialogue.
Industry analysts say the dispute reflects a broader challenge facing Nigeria’s economic managers: balancing the urgent need to close the country’s metering gap with the long-term objective of building domestic industrial capacity.
While supporters of local manufacturing see the metering gap as an opportunity to deepen industrial development and reduce import dependence, others remain concerned about financing, production costs and the ability of local firms to meet large-scale demand within required timelines.
Also, the industry stakeholders point to positive developments, including support from the Nigerian Electricity Regulatory Commission (NERC) for the MAP and Meter Acquisition Fund (MAF) frameworks, under which many STS smart prepaid meters have been supplied by AMMON members.
The Presidential Metering Initiative is also viewed as a strategic platform for advancing local manufacturing and encouraging backward integration. Industry players note that significant progress has already been made in the local production of meter boxes, cables, trunking pipes, personal protective equipment and other metering-related materials.
The new Minister of Power, Joseph Tegbe, now faces the challenge of balancing the interests of local manufacturers with the procurement requirements of international financiers backing the DISREP programme.
For now, AMMON remains firm, keeping its court injunction in place while awaiting concrete action from government authorities. The association insists it is not seeking preferential treatment but rather a fair opportunity to compete and contribute to Nigeria’s development.
As negotiations continue, the outcome of the DISREP impasse could shape not only the future of Nigeria’s metering programme but also the role of local manufacturing in major infrastructure projects for years to come. For millions of Nigerians still waiting for electricity meters, the stakes remain high.
