Nigeria’s plan to improve electricity distribution through the World Bank-backed Distribution Sector Recovery Programme (DISREP) is facing a major setback after a court injunction halted the procurement of 1.55 million smart meters.
According to the World Bank’s latest Implementation Status and Results Report, the legal action filed by the Association of Meter Manufacturers of Nigeria (AMMON) has become the biggest challenge threatening the successful delivery of the $500 million programme.
AMMON, which represents local meter manufacturers and assemblers, argues that the international bidding process for the smart meters unfairly favours foreign suppliers while ignoring Nigerian manufacturers. The group believes this approach could weaken local industries and reduce opportunities for domestic companies.
Following the court order granted on April 30, the opening of bids for the second International Competitive Bidding (ICB2) process has been suspended. As a result, the Transmission Company of Nigeria’s project team has postponed the bid submission deadline three times, with the latest extension ending on June 25, 2026.
The World Bank warned that if the legal dispute continues for much longer, the government may have no choice but to cancel the international procurement exercise. Such a move could increase project costs, create uncertainty in the market, and delay efforts to improve electricity distribution across the country.
Despite the setback, progress is being made in other parts of the programme. Contracts for the local supply of 217,000 smart meters under the National Competitive Bidding process are almost ready after receiving legal observations from the Attorney General of the Federation.
However, the Bureau of Public Enterprises (BPE) said the contracts cannot be signed until the court injunction secured by AMMON is lifted.
The World Bank noted that implementation under the first phase of the international meter procurement has continued to record encouraging results. By June 15, 2026, manufacturers had produced about 1.23 million smart meters. Out of this number, over 1.03 million had been shipped to Nigeria, while about 482,000 had already been installed in homes and businesses.
The Bank also said new directives introduced by the Nigerian Electricity Regulatory Commission (NERC) in January 2026 are expected to speed up the installation of the remaining meters.
Beyond metering, the programme has achieved several milestones. Around 530,000 Nigerians have gained access to electricity through DISREP’s contribution to the Mission 300 initiative. More than three million electricity customers have also been captured under the Geographic Information System mapping project.
Performance across the electricity distribution sector has shown gradual improvement. The national metering gap has reduced to 57.27 per cent, while billing efficiency has risen to 82.02 per cent. Reports also show that customer meter installations have increased significantly, while direct electricity connections continue to grow.
Financially, however, progress has been slower. Out of the $500 million approved by the World Bank, only $87.34 million—about 17.5 per cent—had been disbursed as of June 2026.
The Bureau of Public Enterprises has also started releasing part of a $37.5 million advance provided by the World Bank to electricity distribution companies. The funding is linked to improved performance plans, with Port Harcourt, Ibadan and Yola electricity distribution companies expected to complete agreements first.
Meanwhile, preparations are ongoing for an additional $308 million financing package to strengthen the programme.
DISREP, which began in February 2021 and is scheduled to run until May 2028, aims to improve the operational and financial performance of Nigeria’s electricity distribution companies. The World Bank warned that if the court case continues and the smart meter procurement is cancelled, the programme could suffer another major setback, similar to Nigeria’s earlier loss of hundreds of millions of dollars in cancelled power sector funding.
