Kano Electricity Distribution Company has dragged the Manufacturers Association of Nigeria before the High Court of Federal Capital Territory, Abuja, over unlawful interference resulting in revenue losses up to the tune of N5.3bn.

The lawsuit was a counter-action taken by the DisCo following the rejection of the new tariff hike by MAN, Kano Branch and its over 41 member affiliate to boycott payment of the new tariff to the DisCo through a court injunction the association obtained on behalf of maximum demand consumers on Band A in the three states of Kano, Katsina and Jigawa.

KEDCO through a statement issued by the Head of Corporate Communications, Sani Sani and obtained by our reporter, said the actions of MAN had subjected the company to a huge revenue loss of up to over N5.3bn per month.

Recall that KEDCO had disclosed its intentions to reduce electricity supply to Kano, Katsina, and Jigawa States.

It blamed its decision on the two-week court injunction obtained by the MAN, which it claimed hindered its ability to purchase power.

Sani said, “Kano Electricity Distribution Company has dragged the Manufacturers Association of Nigeria to the High Court of Federal Capital Territory, Abuja, over unlawful interference with its business, causing huge financial damage to the Company. The actions of MAN have subjected the Company to a huge revenue loss of up to over N5.3bn Naira per month.

“This is despite their knowledge about FG’s removal of electricity subsidy for Band A customers and fluctuations in various macroeconomic indices such as exchange rates, gas price, inflation and other factors responsible for computing electricity tariffs. These factors have warranted KEDCO’s cost-reflective tariff increase from N159.13 per kWh to N225.00 per kWh.

“The circular signed and issued by Director General of MAN, Segun Ajayi-Kadir, directed all its members, including other Band A customers to disregard their obligations and pay the old tariff rate on account rather than the statutory new tariff, as approved by the regulator. This has led customers on Band A to breach their obligations to pay the new approved tariff.”

The Disco stated that the action of MAN had made it unfairly bear the burden of FG’s subsidy removal on Band A customers and the attendant losses, therefore leaving it with no other option than to drag MAN to court for a breach of contract and unlawful interference and conspiracy against its business.