Kehinde Fajobi
The House of Representatives has directed electricity distribution companies (DisCos) to undertake a ₦500bn recapitalisation to improve their financial stability and enhance service delivery to Nigerians.
This decision followed the adoption of a motion titled “Need to Address the Activities of Distribution Companies in Nigeria,” sponsored by Ayokunle Isiaka, representing the Ifo/Ewekoro Federal Constituency of Ogun State.
In presenting the motion on Wednesday, Isiaka expressed concerns about the impact of DisCos’ operations on the nation’s economy and Nigerians’ welfare.
“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 said.
He criticised the companies for coercing consumers into paying for meters they had already financed, which he described as unfair to households and businesses facing economic challenges.
The lawmaker also accused DisCos of sabotaging economic development, saying, “Essential services are being used against citizens, stifling growth and development.”
He added that despite oversight from the Committee on Power, DisCos have continued to disregard consumer rights and operate with impunity.
Following the House’s resolution, Speaker Tajudeen Abbas called for stricter measures, stating, “DisCos must undergo recapitalisation of no less than ₦500bn, and only those with the required financial capacity, which can provide maximum satisfaction to consumers, should be allowed to continue operating.”
The House also instructed the Federal Ministry of Power to classify DisCos as non-state actors and address their reckless actions, which it said were harming the nation’s economy.
The Committee on Power has been tasked with investigating DisCos’ activities to ensure accountability and protect consumer rights.
Additionally, the committee will carry out awareness campaigns about consumer rights and examine the enforcement of regulations governing DisCos to promote transparency and fairness.