The Federal Government has signed a $500 million contract with three Chinese companies to supply and install 1.4 million smart meters across Nigeria.
The agreement, facilitated through the Transmission Company of Nigeria (TCN) and funded by the World Bank, aims to reduce the country’s staggering 7.1 million-meter deficit.
The deal, part of the Distribution Sector Recovery Programme (DISREP), was signed with Ningbo Sanxing Medical & Electric Co. Ltd, Ningbo Sanxing Smart Electric Co. Ltd, and XJ Group Corporation.
These companies are tasked with delivering and installing the 1,437,500 meters, a significant project under the World Bank’s Investment Project Finance (IPF) arrangement.
TCN’s Managing Director and CEO, Engr. Sule Ahmed Abdulaziz, represented at the signing by the Executive Director of Transmission Service Provider, Engr. Ajiboye Oluwagbenga, hailed the project as a crucial step toward closing the metering gap that has long plagued the nation’s power sector.
“This initiative will significantly reduce the metering shortfall and enhance the overall efficiency of power distribution in the country,” Abdulaziz stated.
However, the decision to award the contract to foreign companies has sparked criticism from local manufacturers, who argue that they have been sidelined in favor of international firms.
The Meter Manufacturers and Assemblers Association of Nigeria (MMAAN) had previously expressed concerns over the stringent bidding requirements imposed by the TCN.
The call for a $340,000 security deposit to qualify for the bid was seen as prohibitive by local manufacturers, effectively shutting them out of the process.
This latest development follows a similar controversy last year, when the TCN clashed with local manufacturers over a $155 million World Bank loan intended to finance the production of 1.2 million meters.
Local manufacturers argued that they were capable of meeting the demand but were overlooked in favor of foreign companies.
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