By Hosea Parah, Abuja
The Manufacturers Association of Nigeria (MAN) is contesting a recent electricity tariff review amid a legal dispute following a Federal High Court ruling in Lagos. The case, brought against the Abuja Electricity Distribution Company Plc and other Distribution Companies (DisCos), aims to halt the implementation of tariff increases that MAN claims could severely impact the industrial sector.
In a statement on Thursday, Segun Ajayi-Kadir, MAN’s Director General, highlighted the importance of the legal action, which seeks an injunction to prevent the Nigerian Electricity Regulatory Commission (NERC) and the DisCos from enforcing the new tariffs. This initiative aims to maintain the existing rate of N68 per kilowatt-hour until NERC addresses two petitions filed by MAN on May 3 and May 16, 2024.
The Federal High Court’s ruling on October 7, 2024, mandates that NERC proceedings must be fully exhausted before any further court intervention. While the judgment does not endorse the NERC’s tariff adjustments, it has raised alarm among manufacturers facing dramatic increases in their electricity bills—some reporting spikes from N8 million to N30 million monthly.
Ajayi-Kadir voiced serious concerns regarding the potential consequences of these tariff hikes on Nigeria’s manufacturing sector. He emphasized that such increases contradict the government’s goal of fostering industrial growth and could lead to operational shutdowns.
“It cannot be the agenda of Mr. President that industries should shut down due to an unsustainable electricity tariff,” Ajayi-Kadir stated. The association is engaging with the presidency to advocate for measures that would ease the financial burden on manufacturers.
As power disconnections by some DisCos have begun, MAN is consulting its legal team, Babalakin & Co., to determine the best course of action. The leadership is dedicated to ensuring the sustainability and profitability of its members, with plans for further guidance on upcoming steps.
The situation has raised concerns among manufacturers, who fear that continued tariff increases could undermine their competitiveness and threaten jobs nationwide. As advocacy efforts intensify, MAN continues to mobilize its members for support in these challenging times.
As the legal proceedings advance, MAN remains committed to protecting the interests of Nigerian manufacturers and advocating for a fair regulatory environment for the industry.