Nigerian Meter Manufacturers Challenge Foreign Dominance In Power Sector Rollout

Nigerian Meter Manufacturers Challenge Foreign Dominance In Power Sector Rollout

Nigerian meter manufacturers seek guaranteed contract share under metering programme, warning foreign dominance could hurt local industry.

A major confrontation is brewing in Nigeria’s electricity sector as indigenous meter manufacturers have drawn a battle line against a World Bank-backed procurement framework, warning that the country’s ambitious metering programme could become a missed opportunity for industrial growth, job creation and economic self-reliance.

The Association of Meter Manufacturers of Nigeria (AMMON) has refused to lift a court injunction stalling aspects of the Distribution Sector Recovery Programme (DISREP) unless the federal government provides legally enforceable guarantees that Nigerian firms will secure a significant share of the contracts.

At the heart of the dispute is the procurement process under DISREP ICB 2, a key intervention designed to tackle Nigeria’s huge electricity metering deficit. AMMON argues that the current arrangement risks handing a substantial portion of the market to foreign suppliers while local manufacturers, who have invested heavily in production capacity, remain on the sidelines.

In a strongly worded communication to the Bureau of Public Enterprises (BPE), the association demanded that no less than 50 per cent of all meters under the programme be reserved for qualified indigenous manufacturers. As an alternative, it proposed mandatory Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) arrangements compelling foreign contractors to partner with local assembly plants.

The manufacturers contend that the dispute has gone beyond electricity meters and now represents a critical test of President Bola Tinubu’s “Nigeria First” industrialisation policy.

“We have invested billions of naira in factories, equipment, manpower development and technology transfer. We are prepared to meet demand. The real question is whether government is prepared to match its rhetoric with action,” AMMON said.

Industry stakeholders say the standoff has exposed growing tensions between Nigeria’s drive for local content development and procurement conditions often attached to international development financing.

AMMON warned that allowing foreign suppliers to dominate the programme would undermine efforts to build domestic manufacturing capacity, worsen pressure on foreign exchange reserves and deny the economy thousands of potential jobs.

The association’s distrust of official assurances is rooted in previous experiences, where local manufacturers reportedly made substantial financial commitments in anticipation of contracts that were either delayed or never fully implemented.

Accordingly, the group is demanding immediate execution of existing contracts under the National Competitive Bidding (NCB 1) programme within two weeks and activation of outstanding contracts under the Presidential Metering Initiative involving about 750,000 meters.

The association also took a swipe at some foreign bidders, alleging that several lack genuine manufacturing footprints and merely function as intermediaries.

“Some of these companies have no factories and no local value addition. They simply import and supply. That does nothing for Nigeria’s industrial growth,” a senior industry source said.

The controversy now places newly appointed Minister of Power, Engr. Joseph Tegbe, at the centre of a delicate balancing act. While the government is under pressure to accelerate meter deployment and improve electricity billing transparency, it must also reconcile those objectives with its local-content and industrialisation commitments.

Energy analysts said the outcome of the dispute could set a far-reaching precedent for indigenous participation in future infrastructure projects financed through multilateral institutions.

Beyond the courtroom and procurement documents, the battle carries significant implications for Nigeria’s manufacturing sector, investor confidence and economic policy direction.

For millions of electricity consumers awaiting prepaid meters, it could determine how quickly the metering gap is closed. For local manufacturers, however, it is shaping into a defining struggle over whether Nigeria’s infrastructure expansion will also serve as a catalyst for domestic industrial development—or become another lost opportunity.