Nigeria’s troubled electricity sector shaken by new court ruling

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As if Nigeria electricity sector is not facing enough troubles already, a Federal High Court in Lagos on 13 July annulled the recent increase in tariffs, which players in the sector had managed to get from the regulatory authorities after a prolonged wait and negotiations. Justice Mohammed Idris said that the decision to increase the tariff has been hasty and did not comply with the provisions of the Electricity Power Sector Reform Act 2004.

The Nigeria Electricity Regulation Commission (NERC) had introduced a new electricity tariff under the Multi-Year Tariff Order (MYTO) 2015, effective from February 1, 2016, after years of players in the sector asking for cost reflective tariff to ensure its survival. The new tariff regime abolished fixed charges and increased the tariff by a maximum of 45 per cent.

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