A Federal High Court in Lagos has dismissed a case brought by the Manufacturers Association of Nigeria (MAN) against the Abuja Electricity Distribution Company (AEDC) and 11 other electricity providers over the implementation of the Band A tariff review. The court ruled that the case was premature and an abuse of legal process.

In a statement issued Thursday, the Nigerian Electricity Regulatory Commission (NERC) confirmed that the ruling was delivered on Monday. The court reviewed all arguments presented by the parties and determined that MAN’s suit failed to respect the provisions of Section 51 of the Electricity Act 2023.

The court emphasized that MAN had not exhausted the dispute resolution mechanisms available under the law before filing the lawsuit. As a result, it ruled that the case did not demonstrate a reasonable cause of action, leading to the case being struck out.

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The Manufacturers Association had earlier challenged NERC’s minor review of electricity tariffs, filing a lawsuit at the Lagos Judicial Division of the Federal High Court. MAN argued that due process was not followed in the tariff review, which was applied on July 31, 2023. The association claimed the tariff hike placed an undue burden on Band “A” customers, who do not receive government subsidies and are guaranteed at least 20 hours of electricity supply daily.

In response, NERC argued that MAN’s legal action was hasty and did not comply with the proper legal process, as required by the Electricity Act.

Band A customers, including large manufacturers, now pay N209.50 per kilowatt-hour, a rate which has significantly increased production costs for these businesses.