Electricity Tariff Hike: Court Dismisses MAN's Challenge

Court Rejects Manufacturers' Suit Against Electricity Hike 

“The court considered the arguments adduced by the parties and delivered a well-considered judgment on 7 October 2024 by ruling that MAN's..."

Federal High Court upholds NERC's tariff increase, denying MAN's appeal to reverse higher electricity rates for Band A customers.

A Federal High Court in Lagos State has dismissed a lawsuit filed by the Manufacturers Association of Nigeria (MAN) against the eleven distribution companies (DisCos) over the increased electricity tariffs for Band A customers. The court ruled that the lawsuit was an abuse of the judicial process and lacked merit since it didn't consider Section 51 of the Electricity Act 2023.

The Manufacturers Association of Nigeria (MAN) had sought to challenge the tariff hike, but the court's decision now upholds the increased rates. According to the Nigerian Electricity Regulatory Commission (NERC), the lawsuit's dismissal was disclosed in a statement released on October 9.

Pointers:

Lawsuit Dismissal: The Federal High Court in Lagos dismissed MAN's lawsuit against DisCos.

Reason for Dismissal: The court cited abuse of judicial process and lack of merit due to non-compliance with Electricity Act 2023's Section 51.

NERC Statement: The Nigerian Electricity Regulatory Commission disclosed the development on October 9.

“The court considered the arguments adduced by the parties and delivered a well-considered judgment on 7 October 2024 by ruling that MAN's suit was an abuse of court process being premature and without due regard to the provisions of section 51 of the Electricity Act 2023.

“The court also held that MAN's case disclosed no reasonable cause of action and that by having not exhausted the internal mechanism of resolution of disputes, that the suit was not instituted with due process of law and consequently struck out the case,” NERC said.

The Manufacturers Association of Nigeria (MAN) has maintained silence on the Federal High Court's ruling on Monday, despite the significant implications for its members.