Court injunction stalls 1.55 million smart meter imports under $500 million World Bank loan

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A legal battle by local meter manufacturers has become the biggest threat to Nigeria's $500 million World Bank-backed Distribution Sector Recovery Programme (DISREP). The dispute has forced repeated delays to the procurement of 1.55 million smart meters and raised the possibility of cancelling the exercise altogether.

The warning came from the World Bank's latest Implementation Status and Results Report for the programme, seen by Nairametrics. The report said the programme still records steady progress and holds a 'Moderately Satisfactory' rating. But the court injunction secured by the Association of Meter Manufacturers of Nigeria (AMMON) is now the project's most significant implementation risk.

The World Bank stated that the programme was upgraded from 'Moderately Unsatisfactory' six months ago following sustained improvements. It warned that the meter procurement dispute could undermine that progress.

According to the report, AMMON obtained a court injunction on April 30, 2026, preventing the opening of bids for the International Competitive Bidding (ICB2) procurement of 1.55 million smart meters. The association, which represents local meter manufacturers and assemblers, argues that the procurement framework sidelines Nigerian manufacturers and weakens domestic industrial development.

The report said: 'The most significant implementation risk at present is the court injunction obtained by the Association of Meter Manufacturers of Nigeria (AMMON) on April 30, 2026, which has halted the opening of bids for the procurement of 1.55 million additional smart meters (ICB2).'

It added that the Transmission Company of Nigeria Project Management Unit has extended the bid submission deadline three times. The latest deadline is June 25, 2026. Discussions continue with relevant government agencies to resolve the dispute.

However, the World Bank warned that prolonged litigation may force authorities to abandon the procurement exercise. It said: 'If the matter cannot be resolved in the near term, cancellation of the ICB2 procurement may need to be considered to avoid market disruption.'

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