A Federal High Court in Lagos has dismissed a lawsuit challenging the recent increase in electricity tariffs, ruling that the case was an abuse of court process.
The Manufacturers Association of Nigeria (MAN) had filed the suit against the eleven electricity distribution companies (DisCos) over the tariff hike for Band A customers.
In its ruling, the court stated that the lawsuit failed to comply with Section 51 of the Electricity Act 2023.
This information was disclosed in a statement released on Wednesday by the Nigerian Electricity Regulatory Commission (NERC).
“The court reviewed the arguments presented and, in a well-considered judgment delivered on October 7, 2024, ruled that MAN’s lawsuit was premature and did not adhere to Section 51 of the Electricity Act 2023,” NERC stated.
The court further held that MAN’s case lacked a reasonable cause of action, noting that the association had not exhausted the internal dispute resolution mechanisms. As a result, the case was struck out for not following due legal process.
MAN has yet to comment on the court’s decision.
Electricity Tariff
NERC had on April 3 approved an increase in electricity tariff for customers under the Band A classification.
The regulatory agency said customers under the category, who receive 20 hours of electricity supply daily, would begin to pay N225 per kilowatt (kW), starting from April 3.
Electricity Tariff Review: Court Strikes Out MAN’s Case Against AEDC, Others
A Federal High Court sitting in Lagos has struck out a case by the Manufacturers Association of Nigeria (MAN) challenging the implementation of electricity tariff review by the Abuja Electricity… pic.twitter.com/Dser5pcSJK
— NERC Nigeria (@NERCNG) October 10, 2024
Shortly after the Minister of Power, Adebayo Adelabu, announced that the Federal Government could no longer afford to subsidize electricity, leading to the tariff hike, the Manufacturers Association of Nigeria (MAN) filed a lawsuit challenging the increase.
The suit, marked FHC/L/CS/881/2024, was filed against the Nigerian Electricity Regulatory Commission (NERC) and several distribution companies (DisCos).
Respondents in the case included the Abuja Electricity Distribution Company (AEDC), Ibadan Electricity Distribution Company (IBEDC), Eko Electricity Distribution Company (EKEDC), Ikeja Electricity Distribution Company (IKEDC), and Kaduna Electricity Distribution Company (KAEDC).
Other DisCos named in the suit were Kano Electricity Distribution Company (KAEDC), Jos Electricity Distribution Company (JEDC), Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), Port Harcourt Electricity Distribution Company (PHEDC), and Yola Electricity Distribution Company (YEDC).