Kano Electricity Distribution Company has sued the Manufacturers Association of Nigeria in the High Court of the Federal Capital Territory, Abuja, for unlawful interference that resulted in revenue losses of up to N5.3 billion.
The lawsuit was filed by the DisCo in response to MAN, Kano Branch and its over 41 member affiliate’s refusal to pay the new tariff to the DisCo via a court injunction obtained on behalf of maximum demand consumers on Band A in the three states of Kano, Katsina, and Jigawa, according to The Punch.
KEDCO through a statement issued by the Head of Corporate Communications, Sani Sani and obtained by our reporter, said the actions of MAN had subjected the company to a huge revenue loss of up to over N5.3bn per month.
KEDCO, in a statement issued by its Head of Corporate Communications, Sani Sani stated that MAN’s activities had resulted in a massive income loss of up to N5.3 billion per month.
KEDCO had announced plans to reduce electricity supplies to Kano, Katsina, and Jigawa states.
It attributed its decision to a two-week court order secured by the MAN, which it claimed hampered its ability to acquire electricity.
Sani said, “Kano Electricity Distribution Company has dragged the Manufacturers Association of Nigeria to the High Court of Federal Capital Territory, Abuja, over unlawful interference with its business, causing huge financial damage to the Company. The actions of MAN have subjected the Company to a huge revenue loss of up to over N5.3bn Naira per month.
“This is despite their knowledge about FG’s removal of electricity subsidy for Band A customers and fluctuations in various macroeconomic indices such as exchange rates, gas price, inflation and other factors responsible for computing electricity tariffs. These factors have warranted KEDCO’s cost-reflective tariff increase from N159.13 per kWh to N225.00 per kWh.
“The circular signed and issued by Director General of MAN, Segun Ajayi-Kadir, directed all its members, including other Band A customers to disregard their obligations and pay the old tariff rate on account rather than the statutory new tariff, as approved by the regulator. This has led customers on Band A to breach their obligations to pay the new approved tariff.”
The Disco alleged that MAN’s actions caused it to unfairly bear the burden of FG’s subsidy removal on Band A customers, as well as the resulting losses, leaving it with no choice but to sue MAN for breach of contract, unlawful interference, and conspiracy against its business.
