On 23 January 2026, the Chief Judge of the Federal High Court issued the Federal High Court (Nigerian Electricity Supply Industry) Practice Directions, 2026. The Chief Judge acted under Order 57 of the Federal High Court (Civil Procedure) Rules 2019. These electricity practice directions aim to make disputes in the Nigerian Electricity Supply Industry (NESI) move faster.
Concerns about NESI dispute resolution are not new. The sector draws heavy foreign and local investment, as well as large public spending. Slow disputes therefore put stability and growth at risk.
How the electricity practice directions fit the Federal High Court Rules
The Practice Directions are sector-specific. They sit alongside the FHC Rules rather than replacing them. Where the Practice Directions leave a gap, the FHC Rules fill it.
They also build on wider reform. The Electricity Act 2023 restructured how the sector resolves disputes. It put regulatory adjudication by the Nigerian Electricity Regulatory Commission (NERC) at the centre. It also affirmed the primacy of alternative dispute resolution. NERC has since worked with the National Judicial Institute to train judges on sector issues.
Key provisions stakeholders should note
Order 3 sets out active case management. Disputes between licensees must go to the Commission first. Consequently, parties cannot approach the Court at the outset. The Court may also require parties to show they used the dispute mechanisms in their own contracts. Order 5(b) then puts NESI suits on a fast track.
Order 4 adds two filing requirements. A plaintiff must file a pre-action affidavit confirming it has exhausted the ADR steps in its contract or those the Commission mandates. Where necessary, it must also file a technical statement explaining industry terms and complex processes. The Practice Directions do not define when a technical statement becomes necessary, which may create early arguments about sufficiency.
Order 6 widens service on companies. The FHC Rules name a director, secretary or other principal officer. The Practice Directions extend this to any senior or responsible officer or representative in the jurisdiction. Order 6(6) goes further still. In contract claims, service by any method the parties agreed counts as good service.
The Registry must also keep a dedicated NESI Register. It records the parties, the nature of the claim, a summary of the issues and the judicial division.
Order 9 tightens interlocutory practice, with a strict seven-day window to respond after service. Order 10 lets the Court visit any place, person or thing connected with a dispute. That matters because electricity claims often turn on the condition of transmission infrastructure, generation plant, meters and network assets. Order 11 then makes written submissions the main mode of advocacy and limits oral amplification.
Appeals from NERC decisions and costs
Order 12 creates a structured appeal route from decisions of NERC and other NESI regulators. It complements section 51(3) of the Electricity Act 2023, which gives a dissatisfied party thirty days to appeal to the Federal High Court. An appellant must file an originating motion, an affidavit of the facts relied on, exhibits including a certified copy of the decision, and a written address. Records must be compiled and transmitted within fourteen days.
Order 15 addresses money. The Court may award reasonable costs to deter frivolous suits and needless adjournments. It must consider costs at the end of every NESI suit. It may also order a defendant to compensate any person who suffered loss or injury, whether or not it imposes another penalty.
What this means for industry stakeholders
Contract drafting now carries more weight. Parties should map their ADR steps clearly, keep records that support a pre-action affidavit, and agree service methods that will hold up. Above all, they should treat negotiation, expert determination, mediation and arbitration as the first route, not the last.
Our newsletter reviews the Practice Directions in full. It assesses their likely impact on NESI dispute resolution, flags implementation gaps, and sets out practical recommendations. To read the full analysis, download the newsletter using the button below.
