Photo:L-R: Joseph Olasunkanmi Tegbe , Minister of Power, and Kunle Kola Olubiyo, President, Nigeria Consumer Protection Network, during a Courtesy Visit to the Minister of Power in his Office in Abuja,
ABUJA, Nigeria — Nigeria’s drive to close its electricity metering gap has received a major boost after the Association of Meter Manufacturers of Nigeria (AMMON) withdrew its lawsuit against the Federal Government, removing legal obstacles that had stalled the deployment of approximately 1.55 million smart meters under key power sector intervention programmes.
The development clears the way for the resumption of procurement and implementation of several government-backed metering initiatives designed to improve electricity billing transparency, strengthen distribution company revenues, and reduce commercial losses across Africa’s largest economy.
The withdrawal was formalised through a Notice of Discontinuance filed before the Federal High Court in Kano after the intervention of the Minister of Power, Chief Joseph Tegbe, who convened high-level discussions involving AMMON and major government agencies to resolve the dispute, according to a statement issued by the Ministry of Power.
Court Injunction Had Suspended National Metering Programmes
The legal dispute had led to a court injunction obtained by AMMON in April 2026, effectively suspending bidding processes for several strategic electricity metering programmes, including:
- Distribution Sector Recovery Programme (DISREP)
- Meter Acquisition Fund (MAF) Phase 3
- Presidential Metering Initiative (PMI)
The injunction delayed procurement activities aimed at expanding access to prepaid electricity meters and addressing Nigeria’s longstanding metering deficit, which has contributed to widespread estimated billing and persistent consumer complaints.
With the litigation now discontinued, the Ministry of Power said procurement processes can resume immediately, allowing implementation of the programmes to proceed.
Government, Industry Reach Compromise
According to the ministry, the resolution was achieved through collaboration among the Federal Ministry of Power, the Bureau of Public Enterprises (BPE), the Transmission Company of Nigeria (TCN), AMMON, and other industry stakeholders.
The agreement, it said, addressed concerns raised by indigenous meter manufacturers while preserving compliance with both domestic and international competitive procurement standards required by programme financiers.
Officials described the settlement as a balanced outcome that protects local manufacturing interests without undermining the financing framework supporting Nigeria’s power sector reforms.
The ministry added that the agreement aligns with the Federal Government’s Nigeria First industrial policy and President Bola Tinubu’s Renewed Hope Agenda, both of which seek to expand local manufacturing capacity while accelerating reforms in the electricity sector.
Smart Meter Rollout Expected to Improve Sector Performance
The deployment of the 1.55 million smart meters is expected to deliver significant operational and financial benefits across Nigeria’s electricity value chain.
According to the ministry, wider access to prepaid meters will:
- Reduce reliance on estimated billing;
- Improve revenue collection by electricity distribution companies (DisCos);
- Cut commercial and collection losses;
- Increase billing transparency and customer confidence; and
- Support the financial sustainability of Nigeria’s electricity market.
Closing Nigeria’s metering gap remains one of the government’s top priorities as it seeks to improve service delivery and strengthen investor confidence in the country’s power sector.
AEDC Begins Repairs After Maitama Substation Dispute Resolved
In a related development, the Abuja Electricity Distribution Company (AEDC) announced that repair work has commenced at the C2 Maitama Substation after authorities resolved issues surrounding the invasion and encroachment of the facility.
The company said the resolution followed interventions by the Minister of the Federal Capital Territory, Nyesom Wike, and the Minister of Power, Joseph Tegbe, whose efforts helped restore access to the substation.
AEDC stated that engineering teams have been deployed to repair damaged infrastructure and restore electricity supply to customers in Maitama and surrounding districts as quickly and safely as possible.
The utility thanked affected customers for their patience and reaffirmed its commitment to safeguarding critical electricity infrastructure while improving the reliability and sustainability of power supply in Nigeria.
Why It Matters
The withdrawal of the lawsuit removes a major bottleneck to one of Nigeria’s largest electricity metering programmes in recent years. For investors, electricity consumers, and development partners, the agreement signals renewed momentum in power sector reforms aimed at improving market efficiency, strengthening local manufacturing, and reducing the financial challenges associated with estimated billing. The planned rollout of 1.55 million smart meters is expected to accelerate progress toward a more transparent and commercially viable electricity market in Nigeria.
