In order to improve their financial standing and fulfil their obligations to customers, the House of Representatives has requested that Electricity Distribution Companies, or DisCos, undertake a N500 billion recapitalisation exercise.
This came after a motion on the “Need to Address the Activities of Distribution Companies in Nigeria” was adopted. At Wednesday’s plenary, Hon. Ayokunle Isiaka, a member from Ogun State’s Ifo/Ewekoro Federal Constituency, sponsored the motion.
The legislator who made the motion pointed out that the country’s economic stability and the wellbeing of Nigerians have recently been seriously threatened by the actions of DISCOs all over the country.
Isiaka raised concern that DisCos continue to demand money for the replacement of power meters in contentious situations after Nigerians had paid for the installation of the meters.
He stated: “Nigerian customers paid for the installation of electricity meters, but under false pretences, discos are requesting extra money for the meters’ replacement, eroding consumer confidence and making financial strains worse.”
Customers are being forced to pay for meters they had previously financed, which puts additional financial strain on individuals and businesses that are already struggling financially.
“Discos continued to operate with impunity and disregard for consumer rights in spite of ongoing regulatory oversight and the Committee on Power’s demand for accountability from these companies.”
Nigeria’s economic stability and citizens’ well-being are being threatened by the Discos’ conduct. The House, led by Speaker Abbas Tajudeen, adopted the motion, requesting that DisCos “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.
Furthermore, it directed its Committee on electricity to look into the operations of electricity distribution corporations and urged the Federal Ministry of Power to designate DisCos as non-state actors and take prompt action to address their careless behaviour that was endangering the country’s economy.
