LAGOS — The House of Representatives has directed electricity distribution companies (DisCos) to pursue a N500 billion recapitalization to strengthen their financial stability and ensure they can effectively fulfill their responsibilities to the public.
The resolution came after a motion titled “Need to Address the Activities of Distribution Companies in Nigeria” was adopted. The motion was sponsored by Ayokunle Isiaka, the member representing the Ifo/Ewekoro Federal Constituency of Ogun State from the All Progressives Congress (APC), during yesterday’s plenary session.In presenting the motion, Isiaka expressed that recent actions by DisCos have significantly threatened the nation’s economic stability and the well-being of its citizens.
He voiced his concern that, despite Nigerians already paying for the installation of electricity meters, distribution companies are still demanding extra payments for their replacement under questionable circumstances. The lawmaker stated: “The House acknowledges that Nigerian consumers have paid for the installation of electricity meters; however, DisCos are now requiring additional payments for replacing these meters under dubious justifications, which undermines consumer trust and places an additional financial burden on citizens.”
He also voiced his concern regarding what he termed the sabotage of economic development by DisCos, which use essential services to undermine citizens and hinder growth and progress.
Furthermore, he noted that despite ongoing regulatory oversight and calls for accountability from the power committee, DisCos have remained defiant, operating with impunity and neglecting consumer rights.
After the motion was adopted, Speaker Tajudeen Abbas called for DisCos to undergo a recapitalization of at least N500 billion. He emphasized that only those with the necessary financial capacity to deliver optimal satisfaction to consumers should be permitted to continue their operations.
As a result, the House instructed the Federal Ministry of Power to recognize DisCos as non-state actors and to take prompt action to address their irresponsible actions, which were said to jeopardize the nation’s economy. Additionally, the House tasked its committee on power with investigating the activities of DisCos to ensure accountability and protect consumer rights.
The committee was equally 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.
FG moves to sell 60 per cent stake in DisCos
Recall that the inability of core investors holding 60 per cent stake in the Electricity Distribution Companies, to repay debts owned by the DisCos, has compelled the government to sell its assets in them.
This potential sale is being considered due to the inability of the Electricity Distribution Companies (DisCos) to maintain their capital-intensive operations over the years. This situation has reportedly impacted the delivery of adequate and reliable power supply to both households and businesses.
In response to this development, Adetayo Adegbemle, Executive Director of PowerUp Nigeria, stated, “This is a positive decision by the government, and I hope it will lead to strengthened operations and improved services for consumers.”