The House of Representatives has mandated electricity distribution companies, known as DisCos, to undertake a N500 billion recapitalisation aimed at enhancing their financial stability and ensuring efficient service delivery to the public.
This resolution was adopted during a plenary session following a motion titled “Need to Address the Activities of Distribution Companies in Nigeria,” sponsored by Ayokunle Isiaka, the representative for Ifo/Ewekoro Federal Constituency of Ogun State.
In his presentation, Isiaka highlighted that recent actions by DisCos have posed significant threats to Nigeria’s economic stability and the welfare of its citizens.
He expressed deep concern that despite consumers having already paid for electricity meter installations, many DisCos are still demanding additional payments for replacement meters under dubious circumstances.
He stated, “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.”
Isiaka further accused DisCos of sabotaging economic development by using essential services against citizens, thereby stifling growth.
He pointed out that despite ongoing regulatory oversight and accountability demands from the Committee on Power, DisCos have continued to operate with impunity and disregard for consumer rights.
Following the motion's adoption, Speaker Tajudeen Abbas urged that DisCos undergo recapitalisation of at least N500 billion, asserting that only those capable of meeting consumer needs should be permitted to continue operations.
The House also directed the Federal Ministry of Power to classify DisCos as non-state actors and take immediate action to address their reckless practices that threaten the nation’s economy.
Additionally, the Committee on Power was tasked with investigating DisCos to hold them accountable and safeguard consumer rights.
