Manufacturers Protest $100m TCN Contract Awarded to Chinese Firms

The Association of Meter Manufacturers of Nigeria (AMMON) has expressed strong displeasure over the recent awarding of a $100 million electricity meter contract by the Transmission Company of Nigeria (TCN) to two Chinese firms, accusing the Federal Government of sidelining capable local manufacturers in a critical sector.

The contract, part of a World Bank-funded programme, involves the supply of 1.25 million electricity meters. AMMON President, Durosola Omogbenigun, disclosed in a statement released on Monday in Abuja that the contract was awarded without giving local manufacturers a fair opportunity to participate, despite their proven capacity and prior warnings about the inefficiencies linked to foreign procurements.

“Before the procurement was finalized, we advised the Federal Government, during the previous administration, to allow local meter manufacturers to take part. Unfortunately, our advice was ignored,” Omogbenigun stated.

The association criticized the slow delivery and implementation of the meters by the Chinese companies. According to AMMON, only 75,000 meters have been delivered over a year after the contract signing, and none have been installed to date. This failure, they argue, undermines efforts to resolve Nigeria’s electricity liquidity crisis—a challenge AMMON claims it is addressing daily through local manufacturing efforts, albeit without sufficient government support.

Despite this underperformance, TCN is reportedly moving forward with a second World Bank-backed contract to procure an additional 1.55 million meters from foreign suppliers. AMMON warns that this ongoing preference for foreign vendors threatens the survival of Nigeria’s local meter manufacturing industry, which is critical to job creation and national industrialization.


AMMON, representing 40 certified local meter manufacturers and assemblers, emphasized that indigenous companies have the technical capability to meet Nigeria’s meter demand. The association noted that Nigerian manufacturers currently have an installed production capacity of six million meters annually and maintain a stockpile of over 250,000 compliant meters ready for immediate deployment.

The association further highlighted past successes, recalling that in 2021 alone, local firms supplied 1.7 million meters within a 12-month period — a feat unmatched by any foreign supplier under similar conditions. Between 2020 and 2024, local manufacturers provided 2.6 million meters (excluding 850,000 units supplied under the Central Bank of Nigeria’s National Mass Metering Programme), with a cumulative local investment of approximately N353.7 billion.

“Local manufacturers have consistently delivered faster and in larger quantities compared to foreign suppliers,” the association noted, underscoring their commitment to supporting Nigeria’s power sector.


AMMON stated that the metering industry currently employs over 10,000 Nigerians directly and supports an additional 30,000 jobs indirectly. The association argued that sidelining local manufacturers not only hampers industrial growth but also risks undermining Nigeria’s broader economic development and employment generation efforts.


While voicing these concerns, AMMON commended President Bola Tinubu for introducing the “Nigeria First Policy,” which prioritizes local content in government procurement. The policy, approved by the Federal Executive Council on May 5, mandates the preference of Nigerian manufacturers, service providers, and contractors in all government contracts, requiring justifications and approval from the Bureau of Public Procurement (BPP) for any exceptions involving foreign sourcing.

The association urged full implementation of this policy within the power sector reforms, especially the Nigeria Distribution Sector Recovery Programme and the Presidential Metering Initiative. AMMON also recommended adopting National Competitive Bidding as the default procurement method to curb capital flight and foster backward integration within Nigeria’s manufacturing industry.

“Nigeria’s metering industry is a vital component of national development. With adequate policy support and enforcement, the sector can transition from assembly to full manufacturing and eventually become a regional export hub under the African Continental Free Trade Area (AfCFTA),” the group said.


AMMON expressed gratitude to the Special Adviser to the President on Energy, Olu Verheijen, and the Minister of State for Industry, Senator Owan Enoh, for their ongoing support of the local content agenda within the power sector.


Efforts to obtain comments from the Transmission Company of Nigeria have been unsuccessful, with TCN spokesperson Ndidi Mbah yet to respond to requests for an official reaction.