Federal High Court Dismisses MAN’s Case Against Electricity Tariff Hike for Band A

A Federal High Court in Lagos has dismissed a lawsuit by the Manufacturers Association of Nigeria (MAN) over the electricity tariff hike for Band A customers. The case, filed against eleven distribution companies (DisCos), was struck out on Monday, October 7, 2024. The Nigerian Electricity Regulatory Commission (NERC) confirmed the judgment on Thursday.

The court ruled that MAN’s lawsuit was prematurely filed without following due process and laid out dispute resolution protocols. As such, it was dismissed.

MAN had earlier argued that they were being unfairly targeted with high tariffs. The association stated that the increase was part of a government strategy to shift the cost of electricity cross-subsidies onto manufacturers. The government previously covered this responsibility before it ended subsidies for the power sector.

The association also argued that the tariff hike from N66 to N225 per kilowatt hour, which started in May 2024, was discriminatory because it only affected Band A customers. They claimed NERC failed to follow the proper regulatory process for tariff adjustments.

NERC defended its decision by stating that only 15 per cent of electricity users were affected by the increase and that MAN’s lawsuit was filed without due process. With the court’s ruling, the tariff hike for Band A customers stands.

Recall that Nigeria’s manufacturing sector suffered a total loss of N1.7 trillion last year due to severe foreign exchange (forex) challenges, leading many companies to halt operations. Manufacturers are complaining that the increased tariffs are further driving up production expenses and making it harder to remain competitive.

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