Plans to procure 1.55 million smart electricity meters can now resume after Nigerian meter manufacturers withdrew a lawsuit against the Federal Government.
The Association of Meter Manufacturers of Nigeria filed a notice to discontinue the case at the Federal High Court in Kano after months of negotiations with the government.
The legal dispute had blocked procurement under the Distribution Sector Recovery Programme, Meter Acquisition Fund Phase III and Presidential Metering Initiative.
Removing the court case clears an important obstacle. But Nigerian electricity consumers should not expect estimated billing to disappear immediately.
Why Manufacturers Went to Court
The dispute began in April 2026 when the association secured a court injunction stopping the procurement process.
Local manufacturers argued that the proposed framework favoured imported meters and could weaken Nigeria’s domestic metering industry.
They maintained that Nigerian factories had the capacity to supply a large share of the meters if the government provided enough support and patronage.
The association withdrew the case after the government agreed to recognise and support local manufacturers.
AMMON President Durosola Omogbenigun said both parties had created a working group to increase local participation and develop a backwards-integration strategy.
The strategy aims to reduce Nigeria’s dependence on imported meters by building more local production capacity.
More Than Five Million Customers Remain Unmetered
Nigeria’s metering problem remains much larger than the 1.55 million units covered by the delayed procurement.
Nigerian Electricity Regulatory Commission data showed that about 5.1 million customers remained without prepaid meters as of February 2026. They represented roughly 41% of the country’s 12.31 million active electricity customers.
This means the 1.55 million meters would cover only about 30% of the recorded gap if every unit reaches an unmetered customer and the number of customers does not increase.
The rollout would therefore provide relief, but it would not end estimated billing nationwide.
The figures show that procurement announcements must be followed by faster delivery and installation.
Expert View: Local Production Must Not Create Another Delay
Omogbenigun said the government’s promises to support local meter makers persuaded the association to withdraw the case.
Supporting Nigerian factories could create jobs, strengthen local supply chains and reduce the foreign exchange spent on imports.
But the government must also ensure that local-content negotiations do not create another long procurement delay.
NERC has identified accurate customer records and meter installations as proven ways to improve energy accounting and revenue collection. The regulator says more meters can reduce commercial losses and improve payments to other companies in the electricity market.
The policy must therefore achieve two goals at the same time: support local manufacturers and deliver meters quickly to customers.
Failing on either side would weaken the expected benefits.
Will New Meters End Estimated Billing?
Meters allow consumers to pay for the electricity they actually use rather than relying on calculations prepared by distribution companies.
They also give DisCos clearer information about consumption and make it easier to collect revenue.
However, procuring meters is only the first stage.
The government and DisCos must distribute the units fairly, install them correctly and resolve technical problems quickly.
Consumers will also need clear information about who qualifies, whether payment is required and when installation will reach their neighbourhoods.
Without transparent rollout plans, millions of customers may continue waiting even after the meters arrive.
Why This Matters
Estimated billing remains one of the biggest sources of conflict between electricity customers and distribution companies.
Unmetered households often dispute bills because they cannot independently confirm how much electricity they consumed.
For DisCos, missing meters make it harder to measure energy, collect payments and reduce losses.
The 1.55 million-unit procurement could improve billing accuracy, restore some consumer trust and strengthen electricity-sector revenue.
It could also create business opportunities for Nigerian meter manufacturers, installers, software providers and maintenance companies.
But the settlement of the court case is not the final victory.
Nigerians will judge the programme by the number of meters installed—not the number announced.