AMMON Injunction Halts $500m World Bank Power Sector Programme, Threatens Meter Procurement
The Association of Meter Manufacturers of Nigeria (AMMON) has secured a court injunction that effectively halts the procurement of 1.55 million smart meters, posing a significant threat to the World Bank’s $500 million Nigeria Distribution Sector Recovery Programme (DISREP). This legal action has emerged as the programme’s most substantial implementation risk, with the potential to derail the entire procurement process if not swiftly resolved.
According to the World Bank’s latest Implementation Status and Results Report, the injunction, obtained by AMMON on April 30, 2026, has stalled the crucial opening of bids under the second phase of the International Competitive Bidding (ICB2) process for these additional smart meters. The World Bank noted that AMMON, representing local meter manufacturers and assemblers, contends that the international procurement framework unfairly excludes Nigerian manufacturers and undermines the development of the domestic industry.
The Transmission Company of Nigeria Project Management Unit has extended the bid submission deadline three times since the injunction was issued, with the latest deadline set for June 25, 2026. The World Bank has warned that failure to resolve this dispute promptly could lead to broader programme repercussions. “The team is engaging with government counterparts to find a resolution,” the report states. “If the matter cannot be resolved in the near term, cancellation of the ICB2 procurement may need to be considered to avoid market uncertainty, cost escalation, and further programmatic delay.”
The Nigeria Distribution Sector Recovery Programme, approved by the World Bank in February 2021, aims to enhance the financial and technical performance of electricity distribution companies through a combination of reforms, metering initiatives, and network investments. Despite this significant legal setback, the World Bank indicated that programme implementation continues to show improvement, maintaining its “Moderately Satisfactory” ratings for both overall progress and progress towards its development objectives. This marks an upgrade from its “Moderately Unsatisfactory” rating six months prior, reflecting sustained implementation gains.
The deployment of smart meters under the first phase of international procurement (ICB1) has seen considerable acceleration. As of June 15, 2026, approximately 1.23 million smart meters had been manufactured, with 1.03 million arriving in Nigeria and 482,000 already installed. This represents a substantial increase from the 365,000 installations recorded during the programme’s mid-term review in April. Furthermore, the programme has facilitated direct electricity access for around 530,000 individuals as part of its contribution to the Mission 300 initiative, with this figure expected to grow as installations progress. The World Bank expressed optimism that directives issued by the Nigerian Electricity Regulatory Commission in January 2026 concerning DISREP implementation will further expedite meter deployment by electricity distribution companies.
In parallel, contracts for an additional 217,000 meters to be procured locally through the National Competitive Bidding (NCB) process have reached an advanced stage of finalisation, following comments from the Attorney General of the Federation. However, the Bureau of Public Enterprises (BPE) has stipulated that the signing of these NCB contracts is contingent upon the lifting of the AMMON court injunction. The World Bank also reported that contracts for the Meter Data Management System, which had been delayed since mid-2025, are in the final drafting stages and are anticipated to be executed before the end of June.
