Reps Push For N500bn Capital Base For DISCOs

The House of Representatives has asked Electricity Distribution Companies (DISCOs) to undergo a recapitalisation exercise up to the sum of N500bn, to put them in a strong financial position to discharge their responsibility to consumers.

This was sequel to the adoption of a motion on the “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.

Moving the motion, the lawmaker noted 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 installations, DISCOs still go ahead to 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 the replacement of these metres under dubious pretences, undermining consumer trust and exacerbating financial burdens.

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“Consumers are being coerced into paying for meters which 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 prioritises constituents’ needs and rights.”

In adopting the motion, the House presided over by the 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, which were threatening the nation’s economy.

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