Local Manufacturers Stall $500m World Bank Metering Project via Court Injunction

The Association of Meter Manufacturers of Nigeria (AMMON) has secured a court injunction that has effectively halted the procurement of 1.55 million smart meters, placing the World Bank’s $500 million Nigeria Distribution Sector Recovery Programme (DISREP) in serious jeopardy.

The World Bank, in its latest implementation status report, identified the legal standoff as the most significant risk to the program. The injunction, granted on April 30, 2026, has blocked the opening of bids for the second phase of the international competitive procurement process. AMMON argues that the current international procurement framework unfairly excludes local manufacturers, thereby undermining the growth and sustainability of Nigeria’s domestic meter-assembly industry.

Threat of Cancellation

The global lender warned that if the dispute remains unresolved in the near term, it may be forced to cancel the procurement entirely to prevent further cost escalations, market uncertainty, and project delays. The Bureau of Public Enterprises (BPE) has further complicated the situation by linking the signing of separate contracts for 217,000 locally procured meters to the vacation of the AMMON injunction.

Despite the legal hurdle, the World Bank noted that the broader DISREP program continues to show “moderately satisfactory” progress. As of June 15, 2026, the first phase of the project has seen 1.23 million smart meters manufactured, with 1.03 million arriving in Nigeria and approximately 482,000 already installed. The program has also contributed to providing direct electricity access to over 530,000 people.

Ongoing Sector Challenges

The report highlighted that while metering progress is accelerating, the program continues to face “substantial” risks, including macroeconomic instability and contractual disputes between the BPE and independent verification agents.

Only $87.34 million, or roughly 17.5 percent of the $500 million facility, has been disbursed to date. Recognizing the persistent implementation challenges, the World Bank has extended the program’s closing date from June 30, 2026, to May 30, 2028. Additionally, plans for an extra $308 million in financing are reportedly in the final stages of preparation.

The electricity sector has recently faced significant restructuring, including the Federal Government’s decision to cancel over $700 million in previously undisbursed World Bank financing due to the inability to meet key reform milestones and mounting financial pressures across the industry.