The House of Representatives has urged Electricity Distribution Companies (DisCos) to undergo a N500 billion recapitalization process to enhance their financial stability and better serve consumers.
This request came after the approval of a motion titled “Need to Address the Activities of Distribution Companies in Nigeria.”
The motion was introduced by Hon. Ayokunle Isiaka, the representative for the Ifo/Ewekoro Federal Constituency in Ogun State, during the plenary session on Wednesday 20/11/24.
In presenting the motion, the lawmaker highlighted that the recent actions of DisCos nationwide have become a major threat to the country’s economic stability and the well-being of Nigerians.
Isiaka voiced concern that, despite Nigerians paying for the installation of electricity meters, DisCos are still requesting extra payments for meter replacements under questionable circumstances.
He stated, “Nigerian consumers have already paid for the installation of electricity meters, yet DisCos are asking for additional payments for replacements under dubious reasons, eroding consumer trust and increasing financial burdens.”
Consumers are being forced to pay for meters they had previously funded, placing additional financial pressure on households and businesses already struggling with economic difficulties.
“Despite ongoing regulatory scrutiny and calls for accountability from the Committee on Power, DisCos continue to operate with stubbornness and a blatant disregard for consumer rights.
“The actions of the DisCos represent a serious threat to Nigeria’s economic stability and the well-being of its citizens.”
While adopting the motion, the House, led by Speaker Abbas Tajudeen, instructed DisCos to “Undergo recapitalization of at least N500bn, with only those possessing the necessary financial strength to ensure optimal service to consumers being allowed to continue operations.”
It also directed the Federal Ministry of Power to classify DisCos as non-state actors and take immediate action to address their reckless behavior, which is jeopardizing the nation’s economy. Additionally, the Committee on Power was tasked with investigating the operations of power distribution companies.
