The Association of Meter Manufacturers of Nigeria (AMMON) has accused the Federal Government of neglecting indigenous manufacturers in favour of foreign firms for multimillion-dollar contracts in the power sector. The group disclosed that the Transmission Company of Nigeria (TCN) recently awarded electricity meter contracts valued at over $100 million (approximately ₦160 billion) to two Chinese companies, despite the proven capacity of local manufacturers to deliver the project.
In a statement issued Monday in Abuja, AMMON President Durosola Omogbenigun said the contract, executed under a World Bank-funded programme, ignored earlier warnings from local producers about the inefficiency and slow pace typical of such foreign procurements.
“Recently, TCN/PMU, a department within the Transmission Company of Nigeria, signed a contract with two Chinese firms to supply 1.25 million meters at a cost exceeding $100 million using World Bank loans. Before this procurement, we advised the Federal Government—then under the previous administration—to allow local manufacturers to participate, but our recommendations were dismissed,” the statement read.
More than a year after the contract was awarded, only 75,000 meters have been delivered, with none yet installed.
“These meters remain uninstalled, undermining efforts to resolve the liquidity crisis in the sector—a challenge AMMON addresses daily without incentives or support beyond our commitment to Nigeria,” Omogbenigun added.
Despite what AMMON describes as the “dismal failure” of the foreign procurement, TCN is reportedly proceeding with a second World Bank-backed contract to acquire an additional 1.55 million meters from foreign suppliers.
The association warned that continued preference for foreign companies threatens Nigeria’s local manufacturing industry, job creation, and industrialisation objectives.
“Only 75,000 meters out of 1.25 million have been delivered so far by these Chinese firms, and they remain uninstalled. Yet, TCN plans to proceed with another foreign procurement of 1.55 million meters, which will further damage local manufacturing,” the group said.
Efforts to obtain a response from TCN spokesperson Ndidi Mbah were unsuccessful at press time.
AMMON, representing 40 certified local meter manufacturers and assemblers, emphasized that Nigerian companies have the full capacity to meet national demand.
Its members reportedly have an installed production capacity of six million meters annually and maintain over 250,000 compliant meters in stock, ready for immediate deployment.
The group recalled that in 2021 alone, local manufacturers delivered 1.7 million meters within 12 months—a feat unmatched by any foreign procurement.
“Our records show that AMMON members deliver faster and in larger quantities than foreign projects. While the World Bank project produced only 75,000 meters in 20 months, AMMON delivered 1.7 million meters in just one year,” it stated.
Between 2020 and 2024, local manufacturers supplied 2.6 million meters (excluding 850,000 units under the CBN-funded National Mass Metering Programme), all locally financed at a cost of ₦353.7 billion.
The sector directly employs over 10,000 Nigerians and supports an additional 30,000 indirect jobs.
While raising concerns, AMMON commended President Bola Tinubu for introducing the “Nigeria First Policy,” which prioritizes local content in government procurement.
The policy, endorsed by the Federal Executive Council on May 5, mandates preference for Nigerian manufacturers, service providers, and contractors, and requires justification and Bureau of Public Procurement approval before sourcing foreign goods or services.
The group called for full implementation of this policy in power sector reforms, including the Nigeria Distribution Sector Recovery Programme and the Presidential Metering Initiative.
AMMON also urged adoption of National Competitive Bidding as the default procurement method to reduce capital flight and encourage backward integration.
“Nigeria’s metering industry is a vital pillar of national development. With appropriate policy support, it can progress from assembly to full manufacturing and become a regional export hub under AfCFTA,” the association said.
Finally, AMMON expressed appreciation to the President’s Special Adviser on Energy, Olu Verheijen, and Minister of State for Industry, Senator Owan Enoh, for their continued support of the local content agenda.
 has accused the Federal Government of neglecting indigenous manufacturers in...){kind=link}