Reps Push For N500bn DISCOs’ Capital Base

The House of Representatives has asked Electricity Distribution Companies (DISCOs) to undergo a recapitalisation exercise worth N500 billion to put them in a solid financial position and enable them to discharge their responsibility to members of the public.

This was a follow-up to the adoption of a motion on “Need to address the activities of distribution companies in Nigeria,” sponsored by the member representing Ifo/Ewekoro Federal Constituency of Ogun State, Hon. Ayokunle Isiaka, at plenary on Wednesday.

The lawmakers moved the motion by noting that recently, the activities of DISCOs across the country have posed a significant threat to the nation’s economic stability and the welfare of Nigerians.
Isiaka expressed worry that Nigerians, after paying for electricity meter installation, distribution DISCOs still demand payment for the replacement of the meters in controversial circumstances.

He noted that; “Nigerian consumers paid for electricity meters installation, but Discos are demanding additional payments for replacing these metres under dubious pretences, undermining consumer trust and exacerbating financial burdens.

“Consumers are being coerced into paying for meters they have earlier financed, causing financial strain on households and businesses already facing economic challenges.

“Despite constant regulatory oversight and demand for accountability by the Committee on Power from these companies, Discos remained recalcitrant in operating with impunity and disregard for consumer rights.

“The Discos’ actions pose a significant threat to Nigeria’s economic stability and welfare of citizens,” stressing the need to stand against injustices and prioritise constituents’ needs and rights.”

On adopting the motion, the House presided over by Speaker Abbas Tajudeen, asked DISCOs to “Undergo recapitalisation of not less than N500bn, and only those with the required financial muzzles that can provide maximum satisfaction to consumers are allowed the space to continue to operate.”

It further asked the Federal Ministry of Power to declare DISCOs as non-state actors and take immediate measures to address their reckless actions threatening the nation’s economy.

The House mandated its Committee on Power to investigate the activities of distribution companies in Nigeria, with the intent of holding them accountable and safeguarding consumer rights.