The Association of Meter Manufacturers of Nigeria (AMMON) has formally withdrawn its lawsuit against the Federal Government, ending months of legal uncertainty that stalled the procurement of 1.55 million smart electricity meters. The withdrawal clears the way for key metering intervention programmes to resume.
The association said national interest informed its decision to discontinue the suit after the Federal Government committed to strengthening the local metering industry.
It said the case was withdrawn following assurances by the Federal Government to increase patronage of locally manufactured electricity meters, support domestic production and implement policies aimed at reducing dependence on imported meters.
AMMON President, Durosola Omogbenigun, confirmed the withdrawal, stressing that the decision was taken in the national interest and followed firm commitments by government to strengthen the local metering industry.
Omogbenigun said, “Yes, it is true. We have withdrawn the suit. It is not that we just decided to reverse our decision or changed our mind like that. There was national interest involved.”
He disclosed that the government had agreed to prioritise locally manufactured electricity meters as part of efforts to deepen local content in the power sector.
According to him, “And still in national interest also, the Federal Government agreed to fully recognise the local metering industry. They agreed that it is to be patronised and improved.”
The AMMON president said both parties had established a joint working group to implement the agreement and expand opportunities for indigenous manufacturers.
He stated, “We have formed a working group with the government on expanding patronage of local manufacturers. We are also developing a backward integration strategy to penetrate and deepen import substitution. So it will not be only foreign meter importation going forward.”
The withdrawal of the suit removes the legal obstacle that halted procurement under several government-backed metering initiatives, including the Distribution Sector Recovery Programme, the Meter Acquisition Fund Phase III and the Presidential Metering Initiative.
The Ministry of Power, through its Special Adviser on Media, Adeola Adelabu, noted that resolving the dispute through dialogue preserved the government’s “Nigeria First” policy push while safeguarding financing needed to bridge the country’s metering gap.
According to the ministry, the withdrawal was formalised through a Notice of Discontinuance filed before the Federal High Court in Kano. The statement noted that the decision ended a dispute that culminated in an injunction secured by AMMON in April 2026, which halted the bidding process for the government’s metering programmes.
It stated, “The withdrawal, actioned through a Notice of Discontinuance filed at the Federal High Court in Kano, was after the intervention of the Minister of Power, Joseph Tegbe, culminating in a high-level resolution meeting between AMMON and other government agencies. This brings to an end a standoff that culminated in an injunction AMMON secured in April 2026, halting bidding on the various metering procurement programmes.”
The ministry explained that the resolution followed consultations involving the Bureau of Public Enterprises, the Transmission Company of Nigeria and other stakeholders, leading to an agreement that addressed the concerns of local manufacturers while complying with procurement regulations.
It added, “The Minister of Power, working with other government agencies including the Bureau of Public Enterprises and the Transmission Company of Nigeria, proffered a mutually agreeable solution that addressed local manufacturers’ concerns within the limits of local and international competitive procurement rules. The engagement produced the commitment that persuaded AMMON to withdraw its suit, allowing the programme’s stalled procurement to resume.”
According to the statement, resolving the dispute through dialogue preserved the Federal Government’s drive to promote indigenous manufacturing while safeguarding efforts to secure financing needed to bridge Nigeria’s metering gap.
The ministry said, “By resolving the dispute through dialogue rather than confrontation, the Minister has kept faith with the ‘Nigeria First’ push for local industrial participation while safeguarding the financing Nigeria needs to close its electricity metering gap.”
It added that the development reflected the Federal Government’s commitment to expanding local manufacturing capacity while accelerating electricity sector reforms.
The dispute began in April 2026 when AMMON obtained an injunction from the Federal High Court in Kano restraining the Federal Government and its agencies from proceeding with the procurement of 1.55 million smart meters under donor-funded and government-backed intervention programmes.
AMMON argued that the proposed procurement framework favoured imported meters at the expense of local manufacturers, contrary to the Federal Government’s local content objectives. The association also maintained that indigenous manufacturers had sufficient production capacity to meet a significant share of the country’s metering needs if adequately supported.
The injunction halted procurement under the Distribution Sector Recovery Programme, Meter Acquisition Fund Phase III and the Presidential Metering Initiative, delaying efforts to reduce Nigeria’s metering gap, improve revenue collection by electricity distribution companies and eliminate estimated billing.
Following weeks of negotiations led by the Minister of Power and involving the Bureau of Public Enterprises, the Transmission Company of Nigeria and other stakeholders, both parties agreed on measures to strengthen local participation in meter manufacturing, establish a joint implementation committee and promote backward integration to reduce dependence on imported meters.
The withdrawal of the suit is expected to allow the suspended procurement process to resume while advancing the Federal Government’s efforts to close Nigeria’s metering gap and improve electricity service delivery.
... AMMON Withdraws Suit Against Federal Government, Clearing Path for Metering Programmes ... Naijaonpoint.