The Association of Meter Manufacturers of Nigeria (AMMON) has voiced strong opposition to the continued awarding of meter supply contracts to Chinese companies despite Nigeria’s robust local manufacturing capabilities. The group, representing over 40 certified Nigerian meter manufacturers and assemblers, argues that the government’s procurement practices undermine local industry growth and contradict President Bola Tinubu’s “Nigeria First Policy,” which seeks to prioritize locally made products and services.
Speaking in a statement, AMMON’s President, Durosola Omogbengun, applauded the President’s policy direction but expressed concern over contracts that still heavily favor foreign suppliers, particularly Chinese firms. According to Omogbengun, such contracts are not only slow in delivery but also economically detrimental, costing Nigeria millions and stifling job creation within the country.
A significant point of contention for AMMON is a $100 million contract awarded by the Transmission Company of Nigeria (TCN) to two Chinese firms for the supply of 1.25 million prepaid meters. The contract, reportedly funded through a World Bank loan, has seen only about 75,000 meters delivered so far, and many remain uninstalled, a situation that undermines efforts to resolve liquidity challenges in the power sector.
Omogbengun revealed, “Before this contract was awarded, we advised the Federal Government to allow local manufacturers to participate, presenting compelling reasons for such inclusion. Unfortunately, our recommendations were ignored. The result has been a significant delay in meter delivery and installation, which is counterproductive.”
Despite the disappointing performance of the current foreign procurement, TCN is reportedly planning a second procurement exercise for 1.55 million meters, again favoring foreign companies. AMMON warns that continuing this pattern will deal a heavy blow to the local metering industry, potentially causing irreversible damage to domestic manufacturing capacity.
The association insists that Nigerian meter manufacturers are fully capable of meeting national demand efficiently and cost-effectively. According to their records, AMMON members have a combined installed production capacity of six million meters annually, with over 250,000 compliant meters readily available for immediate deployment. The group highlights their past achievements, noting that in 2021 alone, they delivered 1.7 million meters within 12 months — far surpassing the 75,000 meters delivered by foreign contractors over 20 months for the World Bank project.
AMMON urges the Federal Government to fully operationalize the Nigeria First Policy within the Distribution Sector Recovery Programme and the Presidential Metering Initiative by adopting National Competitive Bidding as the standard procurement mechanism. This, they argue, would ensure local content inclusion, curb capital flight, stimulate industrial growth, and generate employment opportunities.
The metering industry in Nigeria is vital to national development, with AMMON reporting that 42 local manufacturers currently employ about 10,000 workers directly and an additional 30,000 indirectly. Between 2020 and 2024, local firms installed over 2.6 million meters, including 850,000 meters under the National Mass Metering Programme.
“Mr. President, your leadership inspires confidence and renews hope in Nigeria’s industrial future,” the association stated in conclusion, pledging full cooperation with the government’s “Renewed Hope Agenda” to build a resilient and self-sufficient metering sector.
AMMON’s call reflects growing frustration among Nigerian manufacturers who see repeated contract awards to foreign firms as a missed opportunity to harness local capacity, create jobs, and boost economic growth. The group is hopeful that with sustained political will and proper policy enforcement, Nigeria can not only meet domestic metering demands but also position itself as a regional export hub under the African Continental Free Trade Agreement (AfCFTA).