Court dismisses challenge to electricity tariff increase

October 11, 2024
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A Federal High Court in Lagos has rejected a lawsuit aimed at contesting the recent increase in electricity tariffs, labeling it an abuse of the judicial process. The Manufacturers Association of Nigeria (MAN) initiated the suit against the eleven electricity distribution companies (DisCos) regarding the tariff hike for Band A customers.

In its ruling, the court emphasized that the case disregarded the stipulations outlined in Section 51 of the Electricity Act 2023. This information was shared in a statement by the Nigerian Electricity Regulatory Commission (NERC) on Wednesday.

The court examined the arguments presented by both sides and issued a thorough judgment on October 7, 2024. It concluded that MAN’s lawsuit was premature and failed to adhere to the necessary legal provisions, thus constituting an abuse of the court process. Additionally, the court determined that the case did not present a valid cause of action and noted that MAN had not exhausted the internal dispute resolution mechanisms, leading to the dismissal of the case.

As of now, MAN has not responded to the court’s ruling from Monday. It’s worth noting that NERC approved the increase in electricity tariffs for Band A customers on April 3.

 

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