Oredola Adeola

The Federal Government, through the Transmission Company of Nigeria (TCN) and the Bureau of Public Enterprises (BPE), has signed a contract agreement with Chinese consortiums for the supply and installation of 1,437,500 smart meters across the country.

This contract, executed on behalf of the Ministry of Finance, is aimed at addressing the significant metering gap in Nigeria’s electricity distribution sector.

The international companies involved in the project are Ningbo Sanxing Medical & Electric Co. Ltd, Ningbo Sanxing Smart Electric Co. Ltd, and Messrs XJ Group Corporation.

The agreement was confirmed in a statement shared by TCN on its official X (formerly Twitter) account and was seen by Advisors Reports on Friday.

Engr. Sule Abdulaziz, TCN’s Managing Director/CEO, represented by Engr. Ajiboye Oluwagbenga, Executive Director of the Transmission Service Provider, during the signing ceremony held at the BPE headquarters in Abuja, lauded the initiative as a significant stride towards bridging Nigeria’s 7.1-million-meter gap.

According to him, the project is a key component of the Distribution Sector Recovery Programme (DISREP), funded by the World Bank’s $500 million facility through the Investment Project Finance (IPF) arrangement.

Advisors Reports further confirmed that the tender notice for the International Competitive Bidding (ICB) was issued on March 30, 2023, with a submission deadline of May 17, 2023.

The bid opening was conducted by TCN on October 5, 2023, in collaboration with the foreign consortiums.

However, the project has faced controversy, with local meter manufacturers alleging that TCN and BPE violated the procurement act and did not align with local content directives outlined in Executive Orders 2 and 5.

The Association of Meter Manufacturers of Nigeria (AMMON) through Ademola Agoro, Acting President of AMMON, and Duro Omogbenigun, Secretary, in 2023 raised concerns, alleging that TCN, had exclusively advertised the bids for phase two of the project to foreign companies, neglecting the interests of local manufacturers.

In response, AMMON filed a motion ex parte on October 3, 2023, under Suit No: FHC/KN/262/2023, seeking an interim injunction to restrain the defendants from advancing the procurement process.

Justice A. M. Liman of the Federal High Court in Kano granted an interim injunction, restraining TCN and its affiliates from terminating, interfering with, frustrating, or canceling the due performance or execution of the awarded contract.

Despite the ongoing legal battle, the TCN and BPE have proceeded with the signing of the contract, marking a critical juncture in its efforts to enhance the country’s metering infrastructure.