Reps demand N500bn capital base for DisCos
The House of Representatives has mandated electricity distribution companies to undertake a N500bn recapitalisation to enhance their financial stability and ensure they can efficiently meet their obligations to the Nigerian public.
This resolution followed the adoption on Wednesday of a motion titled “Need to Address the Activities of Distribution Companies in Nigeria,” sponsored by Ayokunle Isiaka, the member representing the Ifo/Ewekoro Federal Constituency of Ogun State.
In soliciting support for the motion, Isiaka highlighted that recent actions by DisCos have posed a significant threat to the nation’s economic stability and the welfare of Nigerians.
He expressed concern that despite Nigerians paying for electricity meter installations, distribution companies are still demanding additional payments for the replacement of these meters under controversial circumstances.
“The House notes that 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,” he said.
“The House is concerned that consumers are being coerced into paying for meters they have already financed, putting additional financial strain on households and businesses already facing economic challenges.”
The All Progressives Congress lawmaker also expressed concern over what he termed the ‘Sabotage of Economic Development’ by DisCos, where essential services are used against citizens, stifling growth and development.
He added that despite constant regulatory oversight and demands for accountability from the Committee on Power, DisCos have remained recalcitrant, operating with impunity and disregarding consumer rights.
Following the adoption of the motion, Speaker Tajudeen Abbas urged DisCos to “undergo recapitalisation of no less than N500bn, and only those with the required financial capacity, which can provide maximum satisfaction to consumers, should be allowed to continue operating.”
The House also directed the Federal Ministry of Power to declare DisCos as non-state actors and take immediate measures to address their reckless actions, which threaten the nation’s economy.
Additionally, the House mandated its Committee on Power to investigate the activities of DisCos with the intent to hold them accountable and safeguard consumer rights.
The committee was also tasked with carrying out awareness campaigns on consumers’ rights and examining the implementation of strict regulations governing DisCos to ensure transparency and fairness in dealings with consumers.
