The House of Representatives has called for Electricity Distribution Companies (DisCos) to undergo a recapitalization of N500 billion to enhance their financial stability and better serve consumers.
This initiative emerged after the adoption of a motion addressing the “Need to Tackle the Activities of Distribution Companies in Nigeria.”
The motion was introduced by Hon. Ayokunle Isiaka, who represents the Ifo/Ewekoro Federal Constituency of Ogun State, during a plenary session on Wednesday.
In presenting the motion, Isiaka highlighted that the operations of DisCos nationwide have become a serious threat to the country’s economic stability and the well-being of its citizens.
He expressed concern that despite consumers paying for the installation of electricity meters, DisCos continue to demand additional payments for meter replacements under questionable circumstances.
He stated, “Nigerian consumers have already financed the installation of their electricity meters, yet DisCos are now insisting on extra payments for replacements, which undermines consumer trust and adds to their financial burdens.”
“Consumers are being pressured to pay for meters they have previously funded, placing additional strain on households and businesses that are already grappling with economic difficulties.”
“Despite ongoing regulatory oversight and demands for accountability from the Committee on Power, DisCos have continued to operate with a lack of regard for consumer rights and accountability.”
“The actions of DisCos pose a serious threat to Nigeria’s economic stability and the welfare of its citizens.”
Upon adopting the motion, the House, led by Speaker Abbas Tajudeen, mandated that DisCos undergo a recapitalization of at least N500 billion, stating that only those with the necessary financial capacity to adequately serve consumers should be permitted to continue operations.
Additionally, the House urged the Federal Ministry of Power to classify DisCos as non-state actors and to take immediate action to address their irresponsible practices, which are jeopardizing the nation’s economy. The Committee on Power was also tasked with investigating the activities of these power distribution companies.
