The Association of Meter Manufacturers of Nigeria (AMMON) has withdrawn its lawsuit against the Federal Government, ending months of legal uncertainty that stalled the procurement of 1.55 million smart electricity meters and paving the way for key metering programmes to resume.
AMMON said it discontinued the case after the Federal Government agreed to strengthen the local metering industry by increasing patronage of locally manufactured electricity meters, supporting domestic production and promoting policies to reduce dependence on imported meters.
The President of AMMON, Durosola Omogbenigun, confirmed the development in a telephone interview on Tuesday, saying the decision followed extensive engagements with the government and was taken in the national interest.
“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 We have withdrawn the suit.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 said.
Omogbenigun disclosed that the Federal Government had committed to prioritising locally produced electricity meters as part of efforts to deepen local content in the power sector.
“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,” he said.
He added that both parties had established a joint working group to implement the agreement and expand opportunities for indigenous manufacturers.
“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,” Omogbenigun stated.
The withdrawal removes the legal obstacle that halted procurement under the Distribution Sector Recovery Programme, Meter Acquisition Fund Phase III and the Presidential Metering Initiative.
In a statement issued on Tuesday by the Special Adviser to the Minister of Power on Media and Public Relations, Adeola Adelabu, the Ministry of Power said the dispute was resolved after a series of engagements led by the Minister of Power, Joseph Tegbe.
According to the ministry, the withdrawal was formalised through a Notice of Discontinuance filed at the Federal High Court in Kano, ending a legal dispute that began in April when AMMON secured an injunction halting the metering procurement process.
“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,” the statement said.
The ministry said consultations involving the Bureau of Public Enterprises, the Transmission Company of Nigeria and other stakeholders produced a mutually acceptable resolution that addressed the concerns of local manufacturers while complying with procurement regulations.
“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,” it added.
The ministry said resolving the dispute through dialogue preserved the Federal Government’s drive to promote indigenous manufacturing while protecting efforts to secure financing for Nigeria’s electricity metering programme.
According to the ministry, the development reflects the government’s commitment to expanding local manufacturing capacity, reducing reliance on imported meters and accelerating reforms aimed at closing Nigeria’s electricity metering gap, improving revenue collection by distribution companies and eliminating estimated billing.
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