Legal Nigeria

NBA Ikeja Issues FG and DISCOS Ultimatum to Reverse Drastic Electricity Tariff Hike or Face Lawsuit

The Ikeja Branch of the Nigerian Bar Association (NBA) has issued a stern warning to both the Federal Government and Electricity Distribution Companies (Discos), demanding a rollback to previous electricity tariffs within seven days or face legal action. During a press conference in Lagos, the branch chairman, Mr Seyi Olawunmi, criticized the recent nearly 300 per cent hike in electricity tariffs as not only unjustifiable but also insensitive given the current economic conditions in Nigeria.

Mr. Olawunmi highlighted discrepancies in the National Electric Regulation Commission’s (NERC) order regarding the tariff increase, stating it does not align with the economic realities faced by ordinary Nigerians. He emphasized the branch’s intention to pursue legal action if the government and relevant parties fail to revert to the previous tariff rates within the specified timeframe.

Pointing to NERC’s Multi-Year Tariff Order (MYTO 2024) issued in December 2023, Olawunmi explained how a significant portion of the electricity tariff was previously subsidized by the Federal Government. However, the removal of this subsidy has resulted in a drastic increase in tariffs, burdening end-users with over 300 per cent more costs.

Mr. Olawunmi condemned the implementation of the new tariff structure, particularly the imposition of N225 per kWh on “band A” customers without empirical justification. He called for the abolition of band classifications, insisting that all customers should either receive 24-hour electricity supply or none at all.

Expressing dissatisfaction with subsidizing inefficiencies under the guise of band classifications, Olawunmi warned that failure to reverse the tariff hike within seven days would compel the branch to pursue legal recourse.