The Socio-Economic Rights and Accountability Project (SERAP) has initiated a lawsuit against President Major General Muhammadu Buhari (retd.) regarding the “failure to reverse the unlawful, unjust, and unreasonable increase in electricity tariffs, and to investigate the spending of public funds as ‘investments and bailouts’ to Distribution Companies (DisCos) and Generation Companies (GenCos) since 2005.” The Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN), the Nigerian Electricity Regulatory Commission (NERC), and the Nigeria Bulk Electricity Trading PLC have been joined as respondents in the suit.
In December 2022, following reported approval by NERC, electricity tariffs were raised across DisCos in Nigeria, with several prepaid customers confirming the increase. However, both the Minister of Power and NERC have declined to confirm or deny this change. In the lawsuit, filed as case number FHC/L/CS/99/2023 at the Federal High Court in Lagos, SERAP is requesting the court to compel President Buhari to instruct NERC to reverse the tariff hike. Additionally, SERAP seeks to compel the President to direct the Attorney General and relevant anti-corruption agencies to promptly investigate the allocation of public funds as investments and bailouts to DisCos and GenCos since 2005.
SERAP argues that regular and uninterrupted access to electricity is a fundamental human right and an essential public service. They contend that millions of Nigerians continue to suffer due to corruption in the electricity sector, which has left them in darkness. Furthermore, SERAP asserts that the increase in electricity tariffs did not adhere to due process and is inconsistent with the provisions of the 1999 Nigerian Constitution (as amended), the Electric Power Sector Reform Act, and the country’s international human rights obligations. They emphasize that the increase is unjustified, particularly given the unreliable and poor quality of electricity services in Nigeria, despite the government spending trillions of naira on investments and bailouts for electricity companies.
According to SERAP, the Federal Government has a legal obligation to ensure transparency and accountability in the management of funds allocated to electricity companies to mitigate corruption and mismanagement. They argue that the government must progressively provide affordable and reliable electricity as a matter of human rights. The lawsuit, represented by SERAP’s lawyers Kolawole Oluwadare and Ms. Adelanke Aremo, highlights that the tariff increase would exacerbate extreme poverty in Nigeria, undermining the ability of millions to meet their basic needs.
SERAP points out that the consequences of corruption in the electricity sector are felt daily by citizens, who face additional costs and exorbitant electricity bills. They stress that inadequate and irregular electricity supply continues to be a significant issue. Investigating allegations of corruption related to the spending of investments and bailouts for electricity companies and recovering any misappropriated public funds would serve the public interest. The government has a sacred duty to ensure transparency and accountability in the allocation of national resources, including public funds directed towards electricity companies.
The recent increase in electricity tariffs comes on the heels of a report from the National Bureau of Statistics (NBC), which indicates that over half of Nigeria’s population lives in multidimensional poverty, relying on dung, wood, or charcoal for cooking instead of cleaner energy sources. High levels of deprivation are evident in areas such as sanitation, access to healthcare, food security, and housing. Improved access to regular electricity supply could significantly enhance the quality of life for many Nigerians. Access to affordable electricity services is essential for alleviating poverty, as it enables the provision of other critical services that help mitigate poverty.
The tariff hike is expected to increase financial burdens on socially and economically vulnerable Nigerians, further marginalizing them and heightening their vulnerability to discrimination. SERAP asserts that the failure of successive governments and high-ranking officials to combat widespread corruption in the electricity sector and to hold perpetrators accountable has led to the exploitation of electricity consumers. They advocate for a thorough investigation into the spending of investments and bailouts by successive governments in DisCos, as well as the prosecution of anyone suspected of corruption or mismanagement of public funds. Recovering any proceeds of crime would help to end the culture of impunity in the power sector and improve access to affordable electricity in Nigeria.
SERAP also highlights that successive governments have not succeeded in increasing power generation or providing Nigerians with reliable electricity supply. Many electricity contracts remain shrouded in secrecy, resulting in trillions of naira being wasted. In their lawsuit, SERAP is asking the court to compel President Buhari to ensure the prosecution of individuals suspected of misappropriating investments and bailouts in the power sector, provided there is sufficient admissible evidence, and to trace and recover any missing public funds. They are also requesting the court to direct NERC to reverse the unlawful, unjust, and unreasonable increase in electricity tariffs that reportedly occurred in December 2022. As of now, no date has been set for the hearing of the suit.
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