A legal dispute between Nigerian meter manufacturers and the federal government has emerged as the biggest threat to the implementation of the World Bank-backed $500 million Distribution Sector Recovery Programme (DISREP), raising concerns over fresh delays to power sector reforms and electricity metering targets.
The World Bank, in its latest Implementation Status and Results Report, warned that a court injunction secured by the Association of Meter Manufacturers of Nigeria (AMMON) has stalled procurement of 1.55 million smart meters under the programme, creating what it described as the project’s principal implementation risk despite an overall “Moderately Satisfactory” performance rating.
The injunction, granted on April 30, halted the opening of bids for the second International Competitive Bidding (ICB2) process after AMMON challenged the procurement framework, arguing that it sidelines domestic manufacturers and undermines Nigeria’s local industrialisation agenda.
The legal action has already forced the Transmission Company of Nigeria’s project implementation unit to extend the bid submission deadline three times, with the latest extension moving the deadline to June 25, 2026, while government agencies continue efforts to resolve the dispute.
The World Bank cautioned that prolonged litigation could ultimately lead to cancellation of the procurement exercise to prevent further market uncertainty, escalating costs and implementation delays, a development that could significantly slow efforts to close Nigeria’s electricity metering gap.
The procurement represents one of the largest components of DISREP’s metering programme and is central to improving revenue collection, reducing estimated billing and strengthening the financial viability of electricity distribution companies.
While the international procurement remains stalled, progress has continued under the programme’s domestic procurement window. Contracts for 217,000 smart meters to be acquired through National Competitive Bidding have reached an advanced stage after incorporating observations from the Attorney General of the Federation. However, the Bureau of Public Enterprises (BPE) has linked contract execution to the eventual lifting of AMMON’s injunction.
Despite the legal setback, implementation under DISREP’s first international procurement phase has accelerated. As of June 15, 2026, approximately 1.23 million smart meters had been manufactured, with 1.03 million shipped to Nigeria and 482,000 installed, compared with 365,000 installations recorded during the programme’s mid-term review in April.
The World Bank attributed the improved deployment pace partly to regulatory directives issued by the Nigerian Electricity Regulatory Commission (NERC) in January, which are expected to further accelerate meter installations across distribution companies.
Beyond metering, the programme has continued to record operational gains across Nigeria’s electricity distribution network. According to the report, about 530,000 people have gained direct electricity access through DISREP’s contribution to Mission 300, while more than three million electricity customers have been mapped under the Geographic Information System initiative.
Sector performance indicators also showed gradual improvement. Nigeria’s electricity metering gap narrowed to 57.27 percent, billing efficiency improved to 82.02 percent, while weekly deployment reports indicated customer meter installations rose to 379,380 from 265,000 earlier in the year. Direct electricity connections also increased to 418,033 people.
Financial implementation, however, remains relatively slow. Of the $500 million financing approved for DISREP, the World Bank had disbursed $87.34 million by June 2026, representing about 17.5 percent of the facility.
Under the programme’s results-based financing component, BPE has commenced phased transfers from a $37.5 million advance released by the World Bank in December 2025 to electricity distribution companies. The funding is tied to revised Performance Improvement Plans, with Port Harcourt, Ibadan and Yola electricity distribution companies expected to conclude agreements in the first phase.
The report also highlighted unresolved contractual issues between BPE and the programme’s Independent Verification Agent, noting that negotiations over a revised scope of work remain outstanding and could affect programme monitoring.
Meanwhile, preparations are progressing for an additional $308 million financing package, with the concept note already completed and peer-reviewed as the World Bank awaits internal clearance to move the proposal to the Concept Review stage.
Approved in February 2021 and scheduled to run until May 2028, DISREP is designed to improve the operational and financial performance of Nigeria’s electricity distribution companies through investments in metering, network modernisation and institutional reforms.
The World Bank warned that failure to resolve the current procurement impasse could jeopardise one of the programme’s flagship interventions, recalling Nigeria’s earlier cancellation of $717.7 million in undisbursed financing under the Power Sector Recovery Operation as evidence of the cost of prolonged implementation bottlenecks in the electricity sector.
