The House of Representatives has called on electricity distribution companies (DisCos) in the country to recapitalise to the tune of N500 billion. The move is aimed at strengthening the financial capacity of the and DisCos ensuring improved service delivery.
The resolution, entitled: ‘Need to Address the Activities of Distribution Companies in Nigeria’, was adopted during Wednesday’s plenary session.
The motion was sponsored by Rep Ayokunle Isiaka representing Ifo/Ewekoro Federal Constituency, Ogun State.
Isiaka raised concerns over operational and financial challenges confronting the DisCos, which he said are threatening the nation’s economic stability and the welfare of the people.
The lawmaker particularly highlighted issues surrounding the installation and replacement of electricity meters for consumers.
“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 further accused the DisCos of imposing unnecessary financial strain on Nigerians by forcing them to pay twice for meters they had already financed. According to him, these practices erode consumer confidence and stunt economic growth.
Isiaka also knocked the electricity companies for what he described as acts of economic sabotage, arguing that their inefficiencies and high-handedness were stifling the development of critical sectors.
The Rep member lamented that despite ongoing push for oversight accountability, the DisCos have operated with impunity, ignoring the rights of consumers and the directives of regulatory bodies.
Speaker of the House, Tajudeen Abbas emphasised the need for urgent reforms in the sector for efficiency.
He agreed that the companies DisCos must undergo recapitalisation of no less than N500 billion, stressing that only operators with the financial capacity to meet consumer demands should remain in business.
The House also directed the Federal Ministry of Power to declare DisCos as non-state actors and implement measures to curb what it described as “their reckless practices”, which it said were hurting the economy.
It mandated its Committee on Power to investigate the activities of the DisCos, with a view to enforcing accountability and protecting consumer rights.
The committee was also mandated to initiate public awareness campaigns on consumer rights and to ensure strict compliance with regulations governing the operations of the distribution companies.
The resolution underscores the growing demand for transparency, fairness, and improved service delivery in the country’s power sector.
END