Legal battle over electricity tariff hike not over, says MAN

The Manufacturers Association of Nigeria (MAN) says the legal battle against the implementation of electricity tariff review is not yet over. This followed the decision of a Federal High Court in Lagos which quashed a suit filed by the MAN contesting the Band A electricity tariff review implemented by the Abuja Electricity Distribution Company (AEDC) […]

The Manufacturers Association of Nigeria (MAN) says the legal battle against the implementation of electricity tariff review is not yet over.

This followed the decision of a Federal High Court in Lagos which quashed a suit filed by the MAN contesting the Band A electricity tariff review implemented by the Abuja Electricity Distribution Company (AEDC) and 11 other entities.

The ruling found that MAN’s suit constituted an abuse of court processes, labeling it premature and lacking adherence to Section 51 of the Electricity Act 2023.

The court concluded that MAN had not exhausted the necessary dispute resolution mechanisms before filing the suit.

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But the association has vowed to take the legal battle further, saying it’s in consultation with the legal team as well as the members.

The Director General of MAN, Segun Ajayi-Kadir, said this while responding to questions at the pre – 52nd Annual General Meeting (AGM) of the association held at MAN House, Ikeja, Lagos.

The 52nd AGM with the theme: “The Imperatives of an Intentional Development of the Nigerian Manufacturing Sector,” will take place between Tuesday 22 and Thursday 24 October, 2024 in Lagos.

Ajayi-Kadir, flanked by the President of MAN, Otunba Francis Meshioye, insisted that the Nigerian Electricity Regulatory Commission (NERC) and the Distribution Companies were wrong to have increased the tariff by 250 percent, saying no organisation can survive such.

He said the Federal Government’s offer of a discount of 50 percent to universities and hospitals was a tacit admittance that the increment “is not acceptable.”

The DG added that the manufacturers are also deserving of the 50 percent discount because “we create jobs, we pay taxes and we are responsible for increasing the non-oil export that Nigeria has.”

He said “The war is not over. There are many battles that are fought. We have indicated that, and like the President said, NERC and the DisCos are wrong because they should not have increased the tariff by 250 percent. Nobody survives that and this is evident in the fact that the Federal Government is giving a discount of 50 percent to universities and hospitals. If it was acceptable, the government would not do that.

“We are eminently qualified to receive the government’s attention. That’s why the President said we are taking the issue (legal battle) forward. We will be advocating vigorously and we are consulting with our counsel and our members.

“Already, some members are very agitated. They are worried about the survival of their business. Some are even saying that we should just shut down and allow our workers to go home, maybe the government will listen. But that will be a very bad thing. We have 2,500 members, you can imagine us shutting down.”