By Adebayo Obajemu
The Association of Meter Manufacturers of Nigeria (AMMON) has withdrawn its lawsuit against the Federal Government, clearing the way for the procurement of 1.55 million smart electricity meters under key intervention programmes aimed at addressing the country’s metering deficit.
The development ends months of legal uncertainty that stalled the implementation of several government-backed metering initiatives and follows negotiations between the Federal Government and the association over the promotion of local meter manufacturing.
Confirming the decision, AMMON President, Durosola Omogbenigun, said the association agreed to discontinue the legal action after the government gave assurances that indigenous manufacturers would play a greater role in the country’s metering programme.
According to him, the decision was taken in the interest of the nation after the government pledged to strengthen local content by increasing patronage of domestic manufacturers and supporting the growth of the indigenous metering industry.
“It was not a case of changing our position. National interest was the overriding consideration. The Federal Government agreed to fully recognise the local metering industry and committed to increasing patronage and supporting its growth,” Omogbenigun said.
He disclosed that a joint working group comprising government representatives and AMMON had been established to oversee the implementation of the agreement, promote local content and develop strategies for backward integration aimed at reducing dependence on imported electricity meters.
“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 of the suit removes the legal obstacle that had suspended procurement activities under major metering schemes, including the Distribution Sector Recovery Programme (DISREP), the Meter Acquisition Fund (MAF) Phase III and the Presidential Metering Initiative (PMI).
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 resolution followed extensive consultations led by the Minister of Power, Joseph Tegbe, involving the Bureau of Public Enterprises (BPE), the Transmission Company of Nigeria (TCN), AMMON and other stakeholders.
The ministry stated that the association formally discontinued the case by filing a Notice of Discontinuance before the Federal High Court in Kano, bringing to an end the legal dispute that resulted in an injunction obtained by AMMON in April 2026.
The injunction had halted the procurement process for the government’s smart metering programmes.
According to the ministry, the settlement preserves the Federal Government’s local content policy while ensuring that procurement processes remain competitive and capable of attracting both domestic and international financing required to accelerate nationwide meter deployment.
AMMON had challenged the procurement framework on the grounds that it gave undue advantage to imported meters despite the production capacity of local manufacturers.
The legal action delayed the acquisition of 1.55 million smart meters intended to improve electricity distribution, reduce estimated billing and enhance revenue collection by electricity distribution companies.
With the dispute now resolved, the Federal Government is expected to resume the procurement process and intensify efforts to close Nigeria’s metering gap while expanding opportunities for indigenous meter manufacturers under an enhanced local content framework.