Local Manufacturers Bet Billions to Counter Foreign Dominance in Meter Rollout

Michael Olugbode in Abuja

Indigenous meter manufacturers in Nigeria are confronting a World Bank‑backed procurement framework, arguing that the nation’s ambitious metering programme could miss key opportunities for industrial growth, job creation, and economic self‑reliance.

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

The dispute centers on the procurement process under DISREP ICB 2, a major intervention aimed at addressing Nigeria’s large electricity metering deficit.

AMMON contends that the current arrangement risks allocating a significant portion of the market to foreign suppliers while local manufacturers—who have invested heavily in production capacity—remain sidelined.

In a strongly worded letter to the Bureau of Public Enterprises (BPE), the association demanded that no less than 50 % of all meters under the programme be reserved for qualified indigenous manufacturers.

Alternatively, it proposed mandatory Completely Knocked Down (CKD) and Semi‑Knocked Down (SKD) arrangements that would require foreign contractors to partner with local assembly plants.

The manufacturers say the dispute has evolved 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 the government is prepared to match its rhetoric with action,” AMMON said.

Industry stakeholders note that the standoff has highlighted growing tensions between Nigeria’s push for local content development and the 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, increase pressure on foreign exchange reserves, and deny the economy thousands of potential jobs.

The association’s distrust of official assurances stems from past experiences in which local manufacturers reportedly made substantial financial commitments in anticipation of contracts that were either delayed or never fully implemented.

Consequently, 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, which involves about 750,000 meters.

The association also criticized some foreign bidders, alleging that several lack genuine manufacturing footprints and merely act 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 say 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.