Federal High Court Declares NERC Enforcement Regulation Null and Void

IBEDC

On the 10th of July 2020, the Federal High Court delivered a landmark judgement in the case of Ibadan Electricity Distribution Company Plc (IBEDC) & 7 Ors. v Nigerian Electricity Regulatory Commission (NERC) (Suit No. FHC/ABJ/CS/665/2018).

In this remarkable decision, the court ruled in favour of IBEDC, holding that NERC exceeded the scope of its statutory powers by issuing Regulation 18 of the Electricity Industry (Enforcement) Regulations, 2014, because the regulation purported to empower NERC to alter the board composition and management of Nigerian power sector licensees; a right reserved by statute for shareholders.

The decision will be welcomed by licenses and potential investors in the power sector, not least because it resolves an issue which had long lingered in the minds of sector stakeholders and observers. The Olaniwun Ajayi team acted as legal counsel to IBEDC in the matter.

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