In a landmark ruling, the Lagos State High Court has issued an interim order, effectively halting the Nigerian Electricity Regulatory Commission (NERC) and the 11 power distribution companies, collectively known as DisCos, from implementing a proposed hike in electricity tariffs.
Justice Lewis Allagoa, presiding over the case, granted the interim ex parte order on Monday in a suit filed by the Manufacturers Association of Nigeria (MAN). The suit, marked FHC/L/CS/881/2024, sought to prevent the implementation of the new tariff, which would have seen a significant increase from ₦66 to ₦225 per kilowatt (kW) for customers in Band A, who are receiving 20 hours of electricity supply daily.
The DisCos affected by this ruling include the Abuja Electricity Distribution Company (AEDC), Ibadan Electricity Distribution Company (IBEDC), Eko Electricity Distribution Company (EKEDC), Ikeja Electricity Distribution Company (IKEDC), and Kaduna Electricity Distribution Company (KAEDC). Others are the Kano Electricity Distribution Company (KEDC), Jos Electricity Distribution Company (JEDC), Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), Port Harcourt Electricity Distribution Company (PHEDC), and Yola Electricity Distribution Company (YEDC).
The court’s decision comes in the wake of widespread discontent among consumers and stakeholders, who have argued that the proposed tariff hike is unsustainable. The NERC had approved the increase in April, citing the federal government’s inability to continue subsidizing power as the reason for the hike.
However, the court’s ruling has provided a temporary reprieve for consumers. Justice Allagoa ordered the respondents to refrain from taking any further steps, including disconnecting power supply, pending the determination of the motion in the matter. He clarified that the order does not exempt consumers from paying their electricity bills at the old rate.
The matter has been adjourned to Monday, June 24, for a hearing. This case represents a significant development in the ongoing discourse around electricity tariffs in Nigeria, and its outcome could have far-reaching implications for consumers, manufacturers, and the power sector at large.
In the meantime, consumers and stakeholders will be watching closely as the drama unfolds. The court’s decision has underscored the importance of regulatory checks and balances in protecting consumer interests. As the nation awaits the court’s final decision, the spotlight remains firmly on the NERC, the DisCos, and the future of electricity tariffs in Nigeria.
Stay tuned for more updates on this developing story.
