The Federal High Court in Lagos has dismissed a lawsuit filed by the Manufacturers Association of Nigeria (MAN) challenging the implementation of the Band A electricity tariff review by the Abuja Electricity Distribution Company (AEDC) and 11 other defendants.

According to a statement released by the Nigerian Electricity Regulatory Commission (NERC) on Thursday, the court delivered the judgment on Monday. The court ruled that MAN’s case was an abuse of the judicial process, stating it was premature and failed to comply with the provisions of Section 51 of the Electricity Act 2023.

The court further noted that MAN had not exhausted the available dispute resolution mechanisms, and as a result, the suit had no reasonable cause of action. Consequently, the case was struck out for not following due legal process.

MAN had initially filed the lawsuit, challenging the minor tariff review conducted by NERC, which affected electricity rates for Band A feeders. The manufacturers sought four key reliefs, arguing that the AEDC and other electricity providers had not fulfilled the legal requirements for a tariff review before applying to NERC on July 31, 2023. They also contended that the regulatory steps leading to NERC's April 3, 2024, Supplementary Order and the subsequent rate review of May 6, 2024, were not properly followed.

Additionally, MAN claimed that imposing the tariff hike solely on Band A consumers while excluding other bands was discriminatory. The association stressed that the defendants must adhere to administrative procedures before implementing the supplementary orders.

In response, NERC argued that MAN’s lawsuit was hasty and an abuse of court processes, as the manufacturers had not followed proper legal channels before bringing the case to court.

Band A customers, who receive at least 20 hours of electricity daily without government subsidies, have seen their rates increase to ₦209.50 per kilowatt-hour, a threefold hike that MAN says has severely impacted production costs.