The House of Representatives has directed electricity distribution companies in Nigeria to undergo a recapitalisation process worth at least N500 billion to enhance their financial stability and service delivery.
This directive was issued following the adoption of a motion titled “Need to Address the Activities of Distribution Companies in Nigeria,” presented on Wednesday by Ayokunle Isiaka, the representative for Ifo/Ewekoro Federal Constituency in Ogun State.
While addressing his colleagues, Isiaka expressed concern over the practices of DisCos, describing them as a threat to Nigeria’s economic growth and the welfare of its citizens.
He highlighted that consumers, despite already financing electricity meter installations, are being compelled to pay additional charges for meter replacements under questionable circumstances.
“Nigerians are paying for electricity meter installations, yet DisCos are demanding more money for replacements under dubious pretences,” Isiaka stated. “This undermines consumer trust and places an undue financial burden on already struggling households and businesses.”
The lawmaker further accused the companies of “sabotaging economic development” by using essential services as leverage against consumers, which he argued stifles growth and progress.
He added that despite oversight efforts by regulatory bodies and the Committee on Power, the DisCos continue to operate with impunity, disregarding the rights of consumers.
In a resolution to address these concerns, Speaker of the House, Tajudeen Abbas, announced the mandatory recapitalisation.
“DisCos must undergo a recapitalisation of no less than N500 billion. Only those with the financial capacity to meet consumer satisfaction should remain operational,” Abbas declared.
The House also instructed the Federal Ministry of Power to categorise DisCos as non-state actors and take immediate steps to curb their alleged reckless actions, which the lawmakers argued are detrimental to the country’s economic stability.
Additionally, the Committee on Power has been directed to investigate the activities of DisCos thoroughly to ensure accountability and the protection of consumer rights.
The committee is also tasked with launching public awareness campaigns to educate Nigerians about their rights as electricity consumers and promote transparency in the sector.
