The House of Representatives has called for a ₦500 billion recapitalisation exercise for Nigeria’s Electricity Distribution Companies (DisCos) to bolster their financial stability and improve service delivery. This directive follows a motion titled “Need to Address the Activities of Distribution Companies in Nigeria”, sponsored by Hon. Ayokunle Isiaka, representing Ifo/Ewekoro Federal Constituency of Ogun State.
During plenary on Wednesday, Isiaka highlighted growing concerns over the activities of DisCos, describing them as a threat to Nigeria’s economic stability and citizens’ welfare. He criticized their handling of consumer payments, particularly regarding electricity meters, which has led to widespread discontent among Nigerians.
Issues with DisCos’ Operations
Isiaka noted that despite consumers paying for electricity meter installations, DisCos continue to demand additional payments for meter replacements under dubious circumstances. This practice, he argued, undermines consumer trust and worsens the financial strain on households and businesses already grappling with economic challenges.
“Nigerian consumers paid for electricity meter installation, but DisCos are demanding additional payments for the replacement of these meters under dubious pretences, undermining consumer trust and exacerbating financial burdens,” Isiaka said.
He further accused the DisCos of disregarding regulatory oversight and accountability, even in the face of consistent monitoring by the Committee on Power.
House’s Resolution
The House, led by Speaker Abbas Tajudeen, adopted the motion and directed DisCos to undergo a recapitalisation of at least ₦500 billion. It specified that only companies with adequate financial capacity to meet consumer demands should continue operating in the sector.
Additionally, the House urged the Federal Ministry of Power to classify DisCos as non-state actors. This designation would enable the government to take swift action to address their reckless behavior, which is seen as a threat to Nigeria’s economy.
The House also mandated its Committee on Power to investigate the operations of DisCos and ensure compliance with consumer protection regulations.
Protecting Consumers and Strengthening the Power Sector
The recapitalisation exercise aims to enhance the financial and operational capacity of DisCos, ensuring they can meet the demands of consumers effectively. The House’s decision underscores its commitment to holding power companies accountable for their actions and prioritizing the welfare of Nigerians.
This development reflects growing frustration over Nigeria’s electricity sector, where consumers often bear the brunt of inefficiencies and poor service delivery. By enforcing stricter regulations and demanding financial transparency, the government seeks to restore trust and promote economic stability.
The outcome of the Committee on Power’s investigation is expected to shed more light on the DisCos’ operations and pave the way for long-term reforms in the power sector.
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