A Review of the Nigerian Energy Industry

Court restrains Power Minister, PHCN from awarding prepaid meters contract

03 August 2012, Sweetcrude, ABUJA – AN Abuja Federal High Court has issued an order restraining the Minister of Power, Prof. Bart Nnaji, chairman of the Nigerian Electricity Regulatory Commission, Dr. Sam Amadi, and the Power Holding Company of Nigeria, PHCN, from proceeding with the award of contract for supply of prepaid meters.

The court presided over by Justice Gladys Olotu issued the restraining order pending the determination of a suit brought by a firm, Ziklagsis Network Limited.

Ziklagsis Network Limited alleged that the PHCN had in 2003 entered into a tripartite agreement with it and Unistar High-Tech System Limited for the maintenance of prepaid electricity meters.

The firm also alleged that the said agreement was frustrated by senior management personnel of the PHCN through various manipulations.

Justice Kayode Eso of the Court of Arbitration had earlier issued an order restraining the PHCN from awarding the contract to any other company pending the determination of the appeal by Ziklagsis.

However, following indications that the respondents were set to disobey
the order of the Court of Arbitration, the firm, through its counsel, Dr. Alex Iziyon, (SAN), filed Form 48 at the Abuja FHC.

Granting the restraining order, Justice Olotu: “It is hereby ordered that an interim injunction is granted restraining the respondent, its agents, servants or any other persons however described from taking any action whatsoever that will directly or by implication render nugatory, the partial award granted in favour of the applicant by the Sole Arbitrator, Justice Eso, in the arbitral proceedings between Ziklagsis Network Limited and the PHCN pending the hearing and determination of the motion on notice.”

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  • Those appointed into office must learn to see government as a continuum. They must realise that they are subject to the agreements duly entered by their predecessors. In the event where they are not satisfied with the terms, they are at liberty to seek legal means of determining the engagement rather than resort to actions that can only incur more by the government. the Power ministry, NERC and the PHCN must discharge their obligation to Ziklagsis, that is the proper thing to do.