A Federal High Court in Lagos has thrown out a lawsuit challenging the recent increase in electricity tariffs for Band A customers, ruling that the case was an abuse of court process. The lawsuit was filed by the Manufacturers Association of Nigeria (MAN) against the eleven electricity distribution companies (DisCos) over the tariff hike, but the court ruled in favor of the Nigerian Electricity Regulatory Commission (NERC).
In the court’s judgment, delivered on October 7, 2024, it was found that the lawsuit lacked merit, mainly because it failed to comply with the legal framework laid out in the Electricity Act of 2023. Specifically, the court cited Section 51 of the Act, which outlines the procedures that need to be followed when dealing with disputes related to electricity tariffs and other regulatory matters. The court determined that MAN had not properly followed these procedures before bringing the case to court.
The Nigerian Electricity Regulatory Commission (NERC) confirmed the court’s decision in a statement issued on Wednesday, October 9. NERC explained, “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 highlighted that MAN did not present a reasonable cause of action and had not exhausted the internal mechanisms available for resolving such disputes before seeking legal intervention. “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 added in their statement.
The Manufacturers Association of Nigeria has not yet responded publicly to the court’s ruling. The case stemmed from a decision by NERC earlier in the year. On April 3, 2024, NERC had approved an increase in electricity tariffs for Band A customers, which led to the backlash and legal action by MAN.
