The Federal High Court in Lagos has dismissed a lawsuit filed by the Manufacturers Association of Nigeria, challenging the Band A electricity tariff review implemented by the Abuja Electricity Distribution Company and 11 other firms.
According to a statement by the Nigerian Electricity Regulatory Commission on Thursday, the judgment, delivered on Monday, found that the suit was without merit and prematurely filed, failing to comply with Section 51 of the Electricity Act 2023.
The court ruled that MAN had not exhausted the necessary dispute resolution processes before turning to the courts, deeming the lawsuit an abuse of court processes. “The suit disclosed no reasonable cause of action,” NERC’s statement read.
MAN’s lawsuit stemmed from its opposition to a minor tariff review initiated by NERC, which took effect on May 6, 2024. The association argued that regulatory procedures were not properly followed by the AEDC and other electricity providers during the application for the tariff hike. MAN also claimed that focusing the increase on Band A customers, which includes large manufacturers, was unfair and discriminatory.
In response, NERC maintained that the case was premature, as MAN had not followed the legally required steps for dispute resolution.
Band A customers, considered premium consumers with no government subsidies, are guaranteed at least 20 hours of electricity supply daily. However, the recent tariff hike to N209.50 per kilowatt-hour has significantly driven up production costs for manufacturers, tripling their electricity expenses under the new rates.
